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Ethereum, price drop: is it really Biden’s responsibility?

As the price of two very famous cryptocurrencies such as Bitcoin and Ethereum follows a downward trend, here it can be considered as a decidedly convenient time to buy both cryptocurrencies, taking advantage of these favorable prices.

In particular, in these last hours, the digital assets with the highest market cap have suffered a lot: as you can easily guess, the reference can only be to Bitcoin and Ethereum.

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Going a little more into details, you can see how the price of Bitcoin it literally collapsed below the $ 60,000 threshold, due to a decrease of 8%. Difficult situation also with regard to Ethereum, since the collapse is even more important, with a decrease of 10%, bringing the digital currency up to the threshold of 4275 dollars.

In any case, as already highlighted, this is a rather gray moment for the entire cryptocurrency sector. Both Solana and Cardano, but also all the other cryptocurrencies with greater capitalization, in fact, are in a tracing phase. In a nutshell, for those who intend to, it is the right time to provide for the purchase at a discount. In this case, the choice of the broker through which to carry out these operations is very important.

The current scenario

If it is true that, from a theoretical point of view, there would also be favorable conditions for buy Bitcoin and Ethereum in a phase of falling prices, on the other hand it is good to point out that first it is necessary to better understand if the conditions for such an evolution actually exist.

It is clear that cryptocurrencies are in one highly unpredictable phase, but it must be said how examining the reasons behind this drop in prices can be very useful to have clearer ideas in terms of perspective.

Bitcoin, but also Ethereum and the other digital assets with the highest market capitalization, are in a waning phase mainly due to the sense of disappointment that has spread due to the new infrastructure plan worth 1.2 trillion dollars, which was put in place by the US administration of Biden.

The link between Biden’s new infrastructure plan and cryptocurrencies

And, in this case, you need to understand what link could there be between this new infrastructure plan by the US administration to revive the economy and cryptocurrencies. The relationship between these two aspects is decidedly closer than one might think. In fact, the plan envisages the entry into force of an innovative taxation system, which is linked to the extension of the definition of broker to take advantage of the Internal Revenue Service. In short, the great concern of all those who habitually invest in digital digital currencies is that the definition of broker can also include all those who do mining, as well as other types of operators.

This is a decidedly extensive interpretation, which would have as its main consequence that of applying taxes at source on the creation of cryptocurrencies. In fact, within the legislation all brokers are asked to report any transaction that exceeds the $ 1000 threshold, based on the provisions of current tax legislation. According to this new law, brokers also have the obligation to collect the sender’s personal information, registering the social security number and, at the same time, always informing about the nature of the transaction, within two weeks from when it is been completed. The new infrastructure plan launched by the Biden administration, therefore, would weigh heavily on cryptocurrency investors from a fiscal point of view.

Kim Lee

Kim is a Chinese girl and has studied in England. Kim loves playing video games, she likes Fortnite games. Kim likes Hollywood movies. Kim's English is very good, so she became a writer. Email : kim@d1softballnews.com

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