After falling to a multiweek low, Bitcoin prices are struggling to stay close to $60,000.
Bitcoin prices have fluctuated a lot today, dipping to their lowest point since October and then struggling to recoup their losses.
The world's most popular digital currency decreased to $58,673.84 today, according to CoinDesk data.
Additional CoinDesk data shows that the coin was trading at its lowest level since October 28.
Following its recent low, the digital asset made a modest comeback, soaring to about $61,400 in just a few hours.
Bitcoin prices, on the other hand, have fallen from this high point, falling to around $59,200 this afternoon.
The digital asset was trading near $61,000 at the time of this storey.
[Editor's note: Investing in cryptocoins or tokens is extremely risky, and the market is mainly unregulated.] Anyone thinking about it should be aware that they could lose their entire investment.]
Some observers attributed the recent market changes to completely natural phenomena such as profit taking.
"Today's activity serves as a reminder that markets are volatile, and profit-taking and pullbacks are inevitable," said Charlie Silver, CEO and Chairman of Permission.io.
"If you're a market participant, short memory are a liability," he said.
"BTC hit $30k in July, representing a 100 percent increase in just four months. This level of appreciation will almost certainly result in a 50% retracement."
Joe DiPasquale, the CEO of BitBull Capital, a cryptocurrency hedge fund, also weighed in.
"Bitcoin recently surged through its previous high to reach a new one, and new highs are typically followed by retracements when profit-taking kicks in," he explained.
Other developments, such as the SEC's denial of a planned spot bitcoin exchange-traded fund (ETF) and "a generally over leveraged market," according to DiPasquale, have created market conditions "conducive to a move down."
The influence of heavy leverage on bitcoin's recent retracement was also discussed by Dylan LeClair, head of market analysis for Bitcoin Magazine.
"The recent market retreat is mostly to blame on high leverage on the long side, with derivative traders gambling on spot Bitcoin price rising," he stated.
"This is particularly evident in the Binance perpetual swap, which is the world's most liquid derivative market and is, predictably, highly leveraged on the long side."
Infrastructure Bill in the United States
Other experts emphasised the significance of President Joe Biden's recent signing of the US infrastructure package into law.
This piece of legislation has gotten a lot of attention in the crypto community because of the stricter controls it will impose on certain organisations doing business in the field.
Some industry participants are particularly concerned about the bill's language, which will offer a broader definition of "brokers" and subsequently oblige organisations that satisfy these criteria to record bitcoin transactions.
An internet and technology attorney, Andrew Rossow, offered his thoughts on the situation.
"While the spending measure is primarily intended to fix and modernise the United States' public works system, it also includes new restrictions for crypto brokers, who must now report transactions worth more than $10,000 to the IRS," he explained.
"Unfortunately, this will result in higher taxes on digital assets." "We may witness pricing variations in the future if service providers raise their costs to compensate for the freshly assessed tax levies," Rossow added.
He shed further light on the matter, stating that:
"Specifically, crypto brokers would be forced to issue a 1099-like document exposing their customers (which is now ambiguous in its phrasing)." The difficulty here is the definition of a 'broker,' which can explain some of the price fluctuations of scared market participants."
"The bill itself is POWERFUL - more than anyone realises right now," said Rossow, "because it's about to lay the groundwork for better defining what a 'Crypto broker' is in our industry - currently, the legislation keeps the definition of a 'broker' very vague, which has sparked fear, concern, and reluctance to support such a bill."
"Once we know what the precedent is for what constitutes a 'broker,' the industry will have a stronger idea of how bitcoin will continue to be impacted for the better" (versus negative).
Given that the courts (digital immigrants) are being obliged to confront digital currency, this bill is scaring investors and market participants right now."
