Bitcoin falls to a monthly low as the cryptocurrency market cap falls by 5%.

Many people dislike the use of the D-word. However, most people would agree that it is preferable to using the C-word.

Of course, we’re talking about dips and crashes.

Bitcoin has dropped another 4% in the last 24 hours. As the largest cryptocurrency, its collapse has contributed to drag the market down with it, with the global crypto market valuation falling 5%. On November 10, Bitcoin reached an all-time high of $69,044 per coin. Its new price below $58,000 is the lowest it has been in almost a month.

While it isn’t really a crash, we’ll call it a correction.

It’s been a very bleak day and week for most tokens that aren’t linked to a metaverse (MANA and SAND tokens are selling like digitally rendered hotcakes). Shiba Inu has been a nasty dog, causing its owners to lose 19% of their money in the last 24 hours. Binance Coin has been bouncing around, losing 8% of its value in the process. Solana was 9 percent scorched after flying too close to the sun. In addition, Ethereum, XRP, and Cardano all plummeted by 4%. Overall, the cryptocurrency market is valued about 13% less than it was on Sunday.

What happened on Monday to shift the tone of the markets, you ask?

That was the day US President Joe Biden signed the $1.2 trillion infrastructure package, which includes new tax reporting requirements for cryptocurrency custodians—and, if fully applied, miners, stakers, wallet providers, and software developers as well. The bill’s phrasing, according to crypto lobbyists, was problematic since it required non-custodial entities to provide customer information to the IRS—information they probably don’t have.

Those reporting rules aren’t set to take effect until 2024, and senators have already made changes to the legislation. Senators Ron Wyden (D-OR) and Cynthia Lummis (R-WY) seek to clarify the language to make it clear that the requirements do not apply to non-custodial actors, while Sen. Ted Cruz (R-TX) wants to eliminate the crypto measures entirely.

Nonetheless, investors may perceive the bill as setting an unsettling tone in Washington, D.C., as regulatory scrutiny increases, undermining the incentive to retain Bitcoin as a long-term store of value.

While the Biden bill isn’t absolutely to blame for the Bitcoin slump, the two are linked. Bitcoin and other digital assets are as well. According to the statistics site Cryptowatch, Bitcoin and Ethereum have moved in lockstep during the last 30 days by a coefficient of 0.84, where -1 = diametrically opposed and 1 equals perfect alignment. The coefficients for BTC-XRP and BTC-ADA are both more than 0.60.

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