According to CoinGecko data, the world’s largest cryptocurrency (BTC), this weekend briefly exceeded the ceiling of 45,000. dollars, hitting a 24-hour high of $ 45,241. This increase is interesting because many investors are waiting for a sign of a sharp rebound of bitcoin and a signal of a return to its total dominance.
Bitcoin sends back game signals
Despite the fact that BTC did not manage to keep the price above 45 thousand. dollars, many investors perceived this event as a significant signal and a harbinger of future increases. Especially since recently, most of the cryptocurrency sector is booming.
Shiba Inu (SHIB), a dogecoin spinoff created last year, has joined the wave of memecoin spikes with a whopping 28% over the past week.
Dogecoin alone is 64% below its May 8 record high of $ 0.73. The coin became wildly popular earlier this year after stars like Elon Musk, Snoop Dogg and Gene Simmons tweeted it, and TikTok influencers predicted it would hit the moon.
Ethereum led the way in major cryptocurrencies with an increase of 22% last week. The increase in ETH came after the introduction of EIP-1559 on August 5. This update burns cryptocurrency instead of paying it to miners, making transaction fees more transparent and paving the way for Ethereum 2.0, the next generation Ethereum update that takes blockchain from proof-of-work to proof-of-stake.
Congress debates cryptocurrency taxation
The boom and wave of enthusiasm in the cryptocurrency market has emerged despite political disagreement in Washington over who must report tax information to the Internal Revenue Service. Senators agree that $ 28 billion in cryptocurrency taxes will help cover the bill for President Biden’s new infrastructure bill, and they want the digital asset industry to help prevent under-reporting of cryptocurrency income.
The original proposal suggested that both centralized and decentralized entities should report customer information to the IRS – even though decentralized entities like DeFi protocols and Bitcoin miners do not collect information from the people who use them.
Both rival amendments to cryptocurrency regulations exempt proof-of-work and proof-of-stake entities, but one of them has decided not to exempt other non-depositaries from tax reporting.
Moreover, US cryptocurrency industry leaders fear that if Congress votes to include this amendment in Biden’s infrastructure bill, they will have to leave the country as they will not be able to comply with the new law.
For now, however, voting has been delayed, and while enthusiasm in the cryptocurrency market has cooled, the market itself has not suffered.