Bitcoin falls to 3-week low as IRS seeks approval for reporting rules

Representations of the cryptocurrency Bitcoin can be seen in this illustration from June 7, 2021. REUTERS / Edgar Su / Illustration

Bitcoin fell to a three-week low on Tuesday as signs of caution from institutional investors issued while the US Internal Revenue Service chief urged lawmakers to introduce stricter reporting requirements for crypto transfers.

IRS chief Charles Rettig said Tuesday that Congress must give the tax authority clear legal powers to collect information on cryptocurrency transfers worth over $ 10,000, the majority of which is not reported.

Speaking before the Senate Finance Committee, Rettig said the market cap of cryptocurrencies is over $ 2 trillion, with more than 8,600 exchanges worldwide. “By design, most virtual cryptocurrencies are designed not to stay on the radar screen, so we’re challenged now.” Continue reading

A spokesman for UK fund manager Ruffer Investment Management previously confirmed that the company exited its Bitcoin bet in April with a profit of $ 1.1 billion on risk fears following rapid gains in the cryptocurrency.

Ruffer completed his Bitcoin bet in November, which was one of the biggest signals of rising institutional interest in the digital currency at the time. By mid-December, it was worth around £ 550 million ($ 745 million).

“In the long term, we remain interested in digital assets and their role in maintaining real wealth,” said the spokesman. “In the short term, after the sharp rise in Bitcoin price, we felt that Bitcoin was at higher risk.”

Rufer’s Bitcoin profit was first reported by the Sunday Times.

Meanwhile, MicroStrategy Inc (MSTR.O), a big supporter of bitcoin companies, has increased the size of a junk bond sale to buy more bitcoin and is now targeting $ 500 million, Bloomberg News reported Tuesday. Continue reading

Bitcoin was last traded at $ 32,055.20, down 4.5% on the day. It bottomed at $ 31,025, the lowest price since a May 19 adjustment that dropped it to nearly $ 30,000 for the first time since January.

The cryptocurrency has slumped in half since hitting a record nearly $ 65,000 in April.

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