Panic Spreads Among Traders As The Crypto Market Nears $1.7 Trillion Evaluation

The leading digital asset in the crypto space Bitcoin along with several other major cryptocurrencies including Ethereum, Dogecoin, XRP, and BNB prices have soared drastically higher in prices over the course of this week.

The price of Bitcoin, in particular, gained a substantial amount last weekend, climbing up to $43k the highest it has ever been since mid-May, and $10k higher than its price last week. On the other hand, The price of Ethereum has led the crypto market higher than it’s ever been in the past 24 hours. The overall crypto market has gained over $250 billion in the last week and is currently nearing $1.7 trillion.

Many traders are growing uneasy with the soaring prices due to the bipartisan infrastructure bill that is soon to pass through the U.S legislature. The $550 billion bill includes provisions to raise $28 billion from crypto traders and investors, many warn that the bill could potentially end the industry.

The bill passed a preliminary Senate vote this week with a proposition stating the imposition of taxations on bitcoin and crypto profits to provide funding to the U.S investment infrastructure. The bill also expanded on the definition of a broker and mentioned that crypto exchanges and wallet provides will need to collect additional information about their users than normal.

According to a draft copy of the bill, any broker that transfers cryptocurrencies will need to file a return with modified information reporting regime. The bill also added that broker-to-broker reports were applicable to all securities including digital assets.

Many traders and investors believe the bill will do more harm than good to the interest of the government. Crypto-focused lawyer Jake Chervinsky laid out the impact of the bill, and how it could affect the crypto industry and market negatively. He warned that the bill could potentially kill the industry since it aims to adopt regulations for which compliance is not possible, implying that the bill could completely ban crypto mining in the U.S.

The provisions have not yet been finalized, yet traders are still uneasy about the language used in detailing the points of the documents. The U.S has become the centre for securing and validating blockchain transactions in return for new crypto tokens, an act that lawmakers would accelerate climate change.

Nonetheless, the final draft of the document has not been published, implying that changes can still be made before publication.