The US Infrastructure Act caused a sharp drop in Bitcoin. What is the truth behind it?

In the recent financial market, the price fluctuations of Bitcoin have attracted widespread attention. Just after the price of Bitcoin broke through the high of $46,700, the sudden sharp drop caught investors off guard. The direct cause of this fluctuation is closely related to the unexpected release of the US Infrastructure Act Crypto Tax Law Amendment. This article will delve into the background, impact and potential impact of this event on the future market.

The introduction of the US Infrastructure Act was originally intended to improve the country's infrastructure construction, covering various fields from roads to networks. However, in this law, the tax provisions involving cryptocurrencies have become a flashpoint. In the view of many investors and financial analysts, the content of this amendment is not only complicated, but also may have a far-reaching impact on the cryptocurrency market. Specifically, the amendment requires cryptocurrency exchanges and miners to report transaction information to the US Internal Revenue Service (IRS), which undoubtedly increases the compliance costs and regulatory pressures of the industry.

Against this background, the price of Bitcoin has experienced drastic fluctuations in a short period of time. The high point of $46,700 gave many investors confidence, but when the specific content of the amendment was gradually announced, market sentiment quickly reversed. Many investors began to worry that future compliance requirements might suppress market activity and lead to a decline in liquidity. This panic spread quickly, causing the price of Bitcoin to plummet in a short period of time, and investors chose to stop losses, leaving the market in a mess.

More notably, this incident not only affected the price of Bitcoin, but also triggered a chain reaction in the entire cryptocurrency market. Other mainstream cryptocurrencies such as Ethereum and Ripple also suffered varying degrees of decline at this time. The market's confidence in cryptocurrencies has been severely hit, and many investors who once had a positive attitude towards digital currencies have begun to re-examine their investment strategies. In this case, many people have turned their attention to more stable asset classes such as gold and stocks.

When analyzing this incident, we cannot ignore the rapid development of the digital currency industry. As more and more companies and individuals participate in cryptocurrency transactions, the complexity and uncertainty of the market are also increasing. For ordinary investors, how to protect their investments in this volatile market has become an urgent problem to be solved. Many financial experts suggest that investors should remain calm and should not make impulsive decisions due to short-term price fluctuations. More importantly, they should pay attention to long-term market trends and the impact of policy changes on the market.

In addition, with the popularity of cryptocurrencies, the attitude of regulators is also changing. The US government is clearly aware that the rapid rise of the cryptocurrency market may have an impact on the traditional financial system. Therefore, it is imperative to take certain regulatory measures. However, how to ensure the safety of investors while promoting market development will be a major challenge for future policymakers.

In this context, investors should pay more attention to policy trends and adjust their investment portfolios in a timely manner. At the same time, many emerging financial tools and platforms have emerged in the market to help investors better manage risks. For example, some cryptocurrency exchanges have begun to provide more complete risk management tools, allowing investors to hedge effectively when prices fluctuate violently. The emergence of these emerging technologies may alleviate market uncertainty to a certain extent.

Despite the challenges facing the current market, many experts are still optimistic about the future of cryptocurrencies. With the continuous advancement of technology and the gradual maturity of the market, cryptocurrencies, as an emerging asset class, still have great development potential. In particular, more and more countries around the world have begun to accept and promote the use of digital currencies, which provides strong support for the further development of the market.

Of course, investors should also remain vigilant while participating in the market. As the market changes, investors need to continue to learn and adapt in order to remain invincible in this volatile market. Every price fluctuation is a test of investors' psychology and strategy. Only with a good mentality and scientific investment methods can you find your place in the market.

In this context, many investors have begun to pay attention to the fundamental analysis of digital currencies, rather than just relying on technical analysis. By deeply understanding the background, team, technology and market demand of the project, investors can better grasp the pulse of the market. In addition, the power of social media and community should not be underestimated in the cryptocurrency industry. Many investors improve their decision-making ability by participating in community discussions to obtain the latest market information and investment advice.

Looking to the future, with the continuous innovation of technology and the continuous development of the market, the cryptocurrency ecosystem will become more and more abundant. In this process, investors should always maintain keen insight and seize the opportunities brought by the market. At the same time, the gradual improvement of policies will also provide guarantees for the healthy development of the market. The future of Bitcoin and other cryptocurrencies is still full of hope.

In general, the release of the crypto tax law amendment to the U.S. Infrastructure Act has triggered sharp fluctuations in Bitcoin prices, reflecting the market's sensitivity and uncertainty to regulatory policies. In the face of this change, investors need to remain calm, adjust their strategies in a timely manner, and pay attention to the long-term development trend of the market. In this market full of variables, only by continuous learning and adaptation can we be invincible in future investments.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

The voting results of the crypto amendment are out, but neither party's bill wins, but both are stillborn; the reason is that Republican Senator Richard Shelby asked to pass the military budget bill he supported at the same time, and after failing to do so, he turned to oppose the entire amendment.

Since last week, the two controversial infrastructure law crypto tax law amendments finally reached a compromise on Monday morning, but were ultimately rejected by the Senate in the voting results.

The new amendment proposed by the six senators who proposed the two amendments clearly stated that non-custodial service providers such as Bitcoin miners, PoS network validators, wallet providers and protocol developers do not need to have reporting obligations.

Senator Pat Toomey said at a press conference on Monday: "We did not make any comprehensive or radical suggestions-the compromised amendment states that crypto brokers refer only to those who provide consumers with services to buy, sell and trade digital assets."

And Treasury Secretary Yellen also seemed to express support for the compromise amendment in a statement on Monday.

Unfortunate reversal! Shelby's defense budget bill came out at the last minute

However, since the debate on the encryption amendment ended on Sunday night, the final amendment must be passed by unanimous consent, rather than the original majority rule.

Senators Pat Toomey, Cynthia Lummis and Rob Portman, who originally proposed the last-minute amendment, spoke in support of the compromise amendment, and another senator Ted
Cruz also expressed support.

In order to avoid a single vote blocking the entire bill, they not only spoke in support, but also tried to persuade their colleagues in the Senate. Toomey told other senators: "There is an amendment that is bipartisan, the White House has joined, and we can do it now."

Unexpectedly, not only did no one oppose it, but another senator Richard
Shelby also said that he would tie it to his proposed $50 billion military budget increase, which was opposed by Senator Bernie Sanders.

The request was rejected, and Shelby immediately turned to oppose the entire encryption amendment. Since the entire proposal could be vetoed by one vote, the encryption amendment was officially stillborn, and the original text of the encryption tax law will be maintained.

The Senate is currently scheduled to vote on the bill on Tuesday, and if it is approved by the Senate, it will be sent to the House of Representatives.

Jake Chervinsky, head of legal affairs at Compound, said: "Senator Richard Shelby (R-AL) opposed the compromise amendment. He didn't get his own $50 billion defense spending amendment, so he opposed all others. Unless he changes his mind, that's it, the compromise amendment is dead. Just for reference, he will retire at the end of this term."

Coin price reaction

This is undoubtedly negative news for the industry. Bitcoin broke through the $46,000 mark last night, and once hit the highest point in nearly two months at $46,723, but as soon as the news of the amendment fell, it immediately fell within an hour, and then slowly recovered. It has risen by 6.38% in the past 24 hours and nearly 18% in the past 7 days. It was reported at $46,001 before press time.