Pressured by Biden and Xi Jinping Bitcoin Collapsed
Gealena – Bitcoin Collapsed. After collapsing last week due to Elon Musk‘s tweet questioning the use of Bitcoin electricity, this week, bad news has returned to the crypto universe.
The Chinese government on Friday local time confirmed it would double its efforts to prevent speculation and financial risks caused by bitcoin mining and trading activities.
The Chinese Development and Financial Stability Committee, chaired by Prime Minister Liu He, stated that Bitcoin must be strictly regulated. This agency said it would eradicate all forms of Bitcoin mining and trading activities.
“Bitcoin is not an investment tool. It is an instrument of speculation,” said China’s state television broadcast, CCTV.
Not only China, but the United States (US) will also be signaling against cryptocurrency trading. President Joseph ‘Joe’ Biden’s administration has plans that cryptocurrency transfers worth more than US$ 10,000 must report to the State Revenue Agency (IRS).
To that end, the Biden government is ready to increase the number of IRS personnel. This is related to new US rules to improve citizen tax compliance.
“As with cash transactions, parties who receive more than US$ 10,000 in crypto assets must report,” said the US Treasury Department report.
These two negative sentiments have caused Bitcoin collapsed as well as the fate of the cryptocurrency universe collapsing in the past week.