Jakarta, CNBC Indonesia – The crypto market bounced back on Friday (21/5/2021) morning trading, after nearly a week of weakness.
Based on data from Investing at 09:00 WIB, Bitcoin price rebound and shot 11.95% to the level of US $ 41,446.30 or equivalent to Rp. 595,809,250, Ethereum soared 23.85% to US $ 2,900.70 or Rp.41,692,531, Litecoin shot up to 20.16% to US $ 216.33 or Rp. 3,108,953.
Next, Chainlink rocketed 25.94% to US $ 31.36 or equivalent to Rp.450,656, Ripple strengthened 16.7% to US $ 1.19 or the equivalent of Rp.17,081, Cardano grew 22.69% to US $ 1.81 or IDR 26,049, and Dogecoin flies 27.82% to US $ 0.40 or IDR 5,815.
The crypto market is doing well rebound this morning, however, the weak signal will continue in the short term. This may happen again after the US Treasury Department called for stricter tax reporting requirements for businesses that transact using crypto.
“There are still some downside risks lingering in the short term, and rarely if rebound in just one move, “said Jean-Marc Bonnefous, managing partner of investment firm Tellurian Capital Coindesk.
“The political uproar, with news of tightening tax regulations, is still weighing on the ongoing recovery.” he added.
Meanwhile, volatility in major cryptos appears to be on the rise again. On Wednesday (20/5/2021), Bitcoin’s 30-day volatility rose by around 80% for the first time since last March. In fact, for Ether it is even higher, where the volatility of digital coins with blockchain Ethereum is up 30 points a day to 139%.
“Crypto is likely to be persistent and the volatility we are currently witnessing is already forming an attractive entry point for adding and creating new positions,” said Steve Ehrlich, chief executive of the brokerage. cryptocurrency Voyager Digital.
In the United States (US) the Treasury Department is working to tighten rules for the use of crypto assets. The Treasury Department announced Thursday that it is taking steps to regulate markets and transactions cryptocurrency.
In a release, the Kueangan Department said that any transfer using crypto assets worth US $ 10,000 or more needs to be reported to the Internal Revenue Service.
The Internal Revenue Service is the US federal government agency that collects taxes and establishes domestic income laws.
“Cryptocurrency already raises significant detection problems by facilitating widespread illegal activity including tax evasion, “the Ministry of Finance said in a release reported by CNBC International.
“This is why the President (Joe Biden) submitted a proposal for additional resources for the IRS to address the growth of crypto assets.”
The announcement comes as part of US President Joe Biden’s administration’s efforts to crack down on tax evasion and promote compliance in the sector. He has previously applied for financial and technology support for the IRS.
Biden will impose harsh penalties for tax evaders. According to US Treasury estimates, the difference between taxes owed to the US government and those actually paid amounted to nearly US $ 600 billion in 2019.
The increased regulation is likely to disappoint some crypto investors. Moreover, the value of Bitcoin has dropped by around 25% over the past month.
The price of Bitcoin that had crash below US $ 40,000 is now starting to strengthen and break that level again. However, if calculated on a monthly basis the crypto asset with the largest market capitalization value still loses nearly 30% of its initial value.
CNBC INDONESIA RESEARCH TEAM
(chd / chd)