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BTC Slips Below $40,000 Amid Concerns Over U.S. Infrastructure Bill

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BTC Slips Below $40,000 Amid Concerns Over U.S. Infrastructure Bill

BTC has mounted an impressive recovery in the last couple of weeks—but its rally has hesitated amid concerns over the U.S. infrastructure bill’s potential impact on the crypto industry.

Just two weeks ago, BTC was battling to stay above the key $30,000 level. 

The leading cryptocurrency then mounted a massive recovery, smashing through $40,000 and reaching a local high on Sunday of $42,628.50, according to CoinGecko.

The breakout marked the end of what has been a sluggish summer for many crypto enthusiasts. 

And thanks to a strong correlation with BTC, many other cryptocurrencies mounted similar rises. ETH, the second-largest cryptocurrency by market cap, rose from lows of roughly $1,730 all the way to $2,672.  

The U.S. infrastructure bill and crypto

The fireworks have since dimmed, however, as the industry took stock of details around a specific clause in a new $550 billion infrastructure bill in the U.S. The price of BTC has since slipped below the key $40,000 level; at the time of going to press it is around $39,600.

Though the bill has yet to pass, as it stands the bill would create a massive tax burden for the entire American crypto industry. 

As Jake Chervinsky, a lawyer specializing in crypto, put it: “This is not a drill.”

ETH Price Surpasses $2,600 While BTC Growth Slows Down

The bill seeks to generate $28 billion from taxing the crypto nouveau riche, but the definition of who or how these funds would be taxed is alarmingly general. In sum, it would demand miners, decentralized finance (DeFi) protocols, and, of course, much larger entities like Coinbase, to file customer forms with the IRS. 

For many projects, this task is “literally impossible,” said Chervinsky. 

This definition has since undergone a minor update, according to a report by CoinDesk. Instead of calling any entity in contact with crypto a “broker,” the bill now indicates that “any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.” 

The amendment is far from conclusive and fails to soothe many concerns generated from the bill’s broader intentions: forcing cryptocurrency operators to gather tax details of all its clients and users.

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.


All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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