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Bitcoin (BTC) Price Plunge to $35,000 Surprising Reasons Unveiled by Colin Wu

source-logo  u.today 28 May 2021 16:00, UTC

Seasoned crypto journalist and unparalleled expert in the Chinese cryptocurrencies scene, Colin Wu, shares two possible reasons for the Bitcoin (BTC) price's 12 percent overnight drop.

All roads lead to Australia?

Mr. Wu revealed two possible catalysts that helped bears to suppress Bitcoin (BTC) to almost $35,000. According to him, Australian tax officers may have come to crypto holders.

Bitcoin drops to 35000

One hundred thousand owners of digital assets should brace themselves for extra tax checks. According to local media, Australian Taxation Office (ATO) assistant commissioner Tim Loh warned that thousands of Aussies should be urged to review their filings as:

A big myth is that people think crypto is a currency, rather than an asset, which is how it is classified by the ATO.

Also, 300,000 taxpayers who applied for tax returns will be asked to report cryptocurrencies gains and losses to the watchdogs.

It should also be noted that, in Australia, cryptocurrency operations (trading, staking, "yield farming," etc.) are subject to capital gains taxes (CGT) and must be reported.

Miners abandoning China

The second reason behind today's painful dropdown is less exotic. Mr. Wu shared that Chinese authorities are rumored to begin implementing anti-mining policies as soon as this Friday night.

As covered by U.Today previously, crypto traders and researchers are attributing the ongoing bearish reversal of crypto markets to the intensified crackdown on cryptocurrencies announced by the Chinese government.

As China expands its witch hunt against miners of Bitcoin (BTC), large entrepreneurs have already started moving their hardware to Mongolia, Kazakhstan and Pakistan.

Meanwhile, the CEO of BTC.TOP mining pool opined that the actual effects of the new anti-Bitcoin (BTC) rhetoric should not be exaggerated.