At the moment, Bitcoin has dropped to $35,000, recording a drop of more than 6% in the past 24 hours. Some experts suggest that the reason is options expiration. However, according to seasoned Chinese cryptocurrency journalist, Colin Wu, there are two possible reasons for the Bitcoin price 12% overnight drop.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price plunge to $35,000 surprising reasons unveiled by Colin Wu
There are two possible reasons why the Bitcoin price fell 12% overnight. Wu has revealed two catalysts that could help the bears drop Bitcoin price to nearly $35,000. According to him, Australian tax officers may have reached out to crypto holders.
Bitcoin once fell below $36,000, someone believes that it may be related to Australia’s request to review the tax evasion of 100,000 investors suspected of cryptocurrency. And there are also rumors that China will introduce a crackdown policy on Friday night.
— Wu Blockchain (@WuBlockchain) May 28, 2021
One hundred thousand digital asset owners should brace themselves for additional tax checks. According to local media, Australian Taxation Office (ATO) assistant commissioner Tim Loh has warned that thousands of Australians should be urged to review their records.
Loh stated:
“A big myth is that people think crypto is a currency, rather than an asset, which is how it is classified by the ATO.”
In addition, 300,000 taxpayers who have filed tax returns will be required to report the gains and losses of cryptocurrencies to supervisory authorities. It should also be noted that, in Australia, cryptocurrency operations are subject to Capital Gains Taxes (CGT) and must be reported.
The second reason behind today’s pain drop is less bizarre. Wu shared that Chinese authorities are rumored to start implementing anti-mining policies as soon as Friday night.
Cryptocurrency traders and researchers are assuming the ongoing bearish reversal of the crypto market is due to the intensifying crackdown on cryptocurrencies announced by the Chinese government. As China expands its witch hunt against Bitcoin miners, big businesses have begun to move their hardware to Mongolia, Kazakhstan, and Pakistan.
Meanwhile, the CEO of mining pool BTC.TOP thinks that the actual impact of the new anti-Bitcoin rhetoric should not be overstated.
Read more:
- Head Of Bank Of Japan Is Pouring Criticism On BTC, That Pushed Bitcoin Price $2,000 Down
- Canada’s Bitcoin ETF Begun Growing Again After $35.2 Million, Signifying The Resumption Of Retail Bitcoin Demand