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A rebound in bitcoin held strong on Thursday, even as the U.S. Treasury Department called for new rules that would require large cryptocurrency transfers to be reported to the Internal Revenue Service and the Federal Reserve flagged the risks cryptocurrencies posed to financial.
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LONDON/TOKYO/NEW YORK (Reuters) - A more than 10% rally in bitcoin was clipped Thursday after the U.S. Treasury Department called for new rules that would require large cryptocurrency transfers to be reported to the Internal Revenue Service.
A Bitcoin (BTC) logo is displayed on a crypto currency ATM machine in a shop in Weehawken, New Jersey, U.S., May 19, 2021. REUTERS/Mike Segar
The proposal came one day after a brutal sell-off on concerns over tighter regulation in China and unease over the extent of leveraged positions among investors sank the world’s biggest cryptocurrency to its lowest level since late January.
5 Min Read
LONDON/TOKYO/NEW YORK (Reuters) - A rebound in bitcoin held strong on Thursday, even as the U.S. Treasury Department called for new rules that would require large cryptocurrency transfers to be reported to the Internal Revenue Service and the Federal Reserve flagged the risks cryptocurrencies posed to financial stability.
FILE PHOTO: A representations of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken, May 19, 2021. REUTERS/Dado Ruvic/Illustration
The comments from U.S. officials come one day after a brutal sell-off on concerns over tighter regulation in China and unease over the extent of leveraged positions among investors sank the world’s biggest cryptocurrency to its lowest level since late January.
UPDATE 5-Bitcoin s star backers, dip buyers help cryptos recover
By Reuters
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BITCOIN regained some lost ground to trade near $40 000 (R560 395) yesterday, a day after a brutal sell-off on concerns over tighter regulation in China and unease over the extent of leveraged positions in the cryptocurrency world.
The biggest and most popular cryptocurrency rose nearly 14 percent to $42 000, after plunging 14 percent on Wednesday to it slowest level since late January.
Those bounces came after prominent crypto backers such as Ark Invest’s Cathie Wood and carmaker Tesla’s Elon Musk indicated their support on Wednesday.
Wood said in an interview with Bloomberg that she was still sticking to her $500 000 forecast. Musk reiterated that Tesla was holding on to its Bitcoin investments.