Rally every day despite the promotion of US cryptocurrency taxation… why?

Although the US Congress is pushing for taxation on cryptocurrencies (virtual currency) to raise funds for infrastructure (societal infrastructure) investment, cryptocurrencies such as Bitcoin are ralliing day after day.

This is believed to be because optimism about cryptocurrencies is reviving and investors are ‘risk taking’ (risk taking).

However, the U.S. Congressional taxation of cryptocurrencies could spur such optimism, Bloomberg reported on the 7th (local time).

Recently, optimism is reviving when Ethereum, the second-largest cryptocurrency by market cap, performed a London hard fork (system upgrade).

As a result, Bitcoin and Ethereum are rising day by day. As the 1st and 2nd largest cryptocurrency by market cap rose, other cryptocurrencies are also rising at the same time.

As of 6:20 am (Korean time) on the 8th, Bitcoin recorded $44,064, a 3.40% increase from 24 hours ago on CoinMarketCap, a global coin market relay site.

Current major cryptocurrency market conditions at this time – Take a look at CoinMarketCap

Bitcoin also soared to $44,440 a few hours ago. It is the first time since May 18th that Bitcoin crossed the $44,000 mark. As a result, Bitcoin has risen nearly 50% since the beginning of the year. This significantly outperforms the S&P’s 18% gain.

Ethereum, the second largest by market cap, is also at $3,112, up 7.16% from 24 hours ago. It is the first time since the 19th of May that Ethereum broke through the $3,000 mark again. Ethereum’s all-time high was $4,293, set on May 13.

Ethereum is rising day by day due to the recent London hard fork. Over the past week, Bitcoin soared 5.88%, while Ethereum soared 24.18% during the same period.

Experts believe that this trend will continue for the foreseeable future.

However, Bloomberg predicts that the US Congress’ push to tax crypto will likely put a brake on further gains.

Currently, the U.S. Biden government is pushing for about $1 trillion in infrastructure investment. Of this, about $550 billion will be invested in improving energy infrastructure such as electricity.

The US Congress plans to raise funds through taxation on cryptocurrencies such as Bitcoin. Currently, the U.S. Congress is trying to raise about $28 billion of the $550 billion in energy infrastructure investment through cryptocurrency-related taxes.

Experts are arguing that if Congress passes such a bill and actually imposes a tax, it will significantly limit the cryptocurrency’s upside, Bloomberg reported.

sinopark@news1.kr