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Is the IRS Causing Bitcoin Tumbles?
U.S. Traders Allegedly Receive Letters Regarding Taxation
July has been a pretty volatile month for Bitcoin. It went from monthly highs of $13,000 to lows of $9500 where it is trading currently. Crypto sentiment went from very bullish when Bitcoin was hitting $13K to very bearish by the end of the month. Currently with Bitcoin trading at $9500, fear grips the markets.
There are more than a few factors at work, causing the tumble. The biggest suspects are Libra & the IRS.
Since the official announcement of Libra last month, regulators from the U.S. & beyond have taken a keen interest in Facebook's cryptocurrency. There have been a few hearings on the topic, and the government seems intent on obstructing Libra as much as possible. Seeing that some have linked Bitcoin's rise to Libra, the U.S. Government's stonewalling could have caused some dips.
The United States Internal Revenue Service, known as the IRS, is the dread of many Americans. The IRS has been known to be a very bureaucratic and difficult to deal with organization. Recently the IRS has tried to tax crypto earnings.
To the dismay of many U.S. based cryptocurrency fans, some have claimed to have received a letter from the IRS.
It isn't known how many crypto-traders have received similar letters.
McAfee Points the Blame
One of Twitters biggest crypto-bulls, John McAfee, placed the blame at the U.S. governments feet. The presidential candidate, anarchist, and computer genius claimed that the U.S. government is trying to suppress Bitcoin's price in a tweet.
Bitcoin is under pressure from the U.S. and its price reflects it. But the U.S. has no real power in controlling CryptoCurrency. Just watch. A week from today Bitcoin will continue its meteoric rise.— John McAfee (@officialmcafee) July 27, 2019
While McAfee's analysis might be correct, his prediction can go either way. Should the U.S. continue putting pressure on the crypto-community, we could see further drops.
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