Ethereum and other popular cryptocurrencies have also seen their value plummet.
During a market-wide slump, the price of bitcoin has dropped below $60,000.
Several other popular cryptocurrencies, including Ethereum (ether), Binance Coin, and Solana (SOL), had their prices drop by 5-10% on Tuesday morning.
Bitcoin’s price has plummeted less than a week after reaching a fresh all-time high of almost $69,000.
The whole crypto market dropped by almost $200 billion overnight to about $2.6 trillion, after briefly approaching $3 trillion during last week’s record-breaking rise.
The most valuable digital token fell 8.2 percent to $58,661. Ether, which was placed second, dropped by more than 10%. According to tracker CoinGecko, the global crypto market worth has decreased 10% in the last 24 hours to $2.7 trillion.
Technical signs had hinted that the recent strong run in the famously volatile market was about to come to an end.
Some observers blamed the drop on new tax reporting requirements for digital currencies included in President Joe Biden’s $550 billion infrastructure plan, which was signed into law on Monday.
“We’ve seen the U.S. infrastructure bill get signed, which has initiated a selloff from traders who are concerned about regulation and taxation,” according to Hayden Hughes, CEO of Alpha Impact, a social-trading platform,
Huges also expressed fear that China’s regulatory onslaught would continue. Meng Wei, a spokesman for the National Development and Reform Commission, stated during a news conference that the country will look into the possibility of charging cryptocurrency mining businesses punitive electricity costs.
This year, Bitcoin has more than doubled in value, while Ether has increased by approximately sixfold. Last week, both achieved new highs amid a craze for digital assets fueled by speculative demand and contentious claims that they help manage inflation risks.