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When the Bitcoin 2021 conference opened in Miami last weekend, it seemed destined to dominate the headlines in the next few days.
After some rather awkward performances by some of Bitcoin’s most famous proponents and the stage invasion of a very enthusiastic Dogecoin supporter, this conference undoubtedly made cryptocurrency observers happy.
related: Who became richest from Bitcoin
But despite the enthusiasm surrounding the meeting and subsequent The President of El Salvador announced Bitcoin will become the legal tender of Central American countries, and the good news about cryptocurrency and cryptocurrency prices quickly turns into the worst.
FBI recovers millions of bitcoin ransoms
In early May, the colonial oil pipeline that carries fuel from New York to Texas was attacked by a ransomware cyber attack. This eventually resulted in the pipeline being closed for five days, leading to a fuel shortage on the east coast of the United States.
related: As Bitcoin plummets, cryptocurrency massacre
Colonial paid a ransom of more than $6 million to retrieve their data from a Russian hacker group calling itself DarkSide.
Shockingly, the US Department of Justice revealed on Monday that the FBI has seized nearly $2.6 million in bitcoin ransoms, which have been paid to DarkSide.
According to court documents, the FBI was able to access the private key of one of the hackers’ bitcoin wallets to recover assets.
Rumors soon began to circulate that US law enforcement agencies effectively invaded the Bitcoin network and Bitcoin is no longer safe and free from government intervention.
After the news came out, Bitcoin fell rapidly by 8%, providing another catalyst for the current weakness in the cryptocurrency market.
The crypto news site Decrypt concluded that the FBI is unlikely to hack criminals’ Bitcoin wallets and compromise the security of the broader Bitcoin network.
When asked by the media how the FBI entered the hacker’s Bitcoin wallet to recover funds, FBI assistant agent Elvis Chen stated that we “do not want to give up our craft, just in case we want to use this [method] Work again for the future. “
Tax officers are looking for cryptocurrency
On Tuesday, the U.S. Internal Revenue Service (IRS) Commissioner Charles Rettig (Charles Rettig) said before the Senate Finance Committee that Congress needs to explicitly authorize tax agencies to collect information about cryptocurrency transfers worth more than $10,000.
Currently, these transfers are largely unreported. But with increasing pressure to regulate cryptocurrencies and the U.S. government trying to resolve some of the largest deficits in history, tax officials came knocking on the door.
Rettig concluded that authorization from Congress is required to collect information that the IRS considers vital. For now, the IRS is often challenged by cryptocurrency holders to show that they have the right to investigate their financial affairs.
If the IRS request is approved by Congress, it will solve the problem once and for all.
Since the total value of global cryptocurrencies now exceeds US$2.5 trillion, the IRS is concerned that most crypto transactions are designed to avoid the attention of the authorities.
The goal of the Biden administration is to encrypt assets to ensure the payment of capital gains taxes and to combat the use of cryptocurrency for illegal activities such as ransomware attacks and money laundering.
Cryptocurrency prices continue to fall
On Tuesday, Bitcoin fell to its lowest price since the crash on May 19 and was worth more than $13,000 in one day.
According to the exchanges involved, Bitcoin’s trading price on Tuesday was slightly higher than $31,000 before making up for part of the loss.
Adam Button, chief currency analyst at ForexLive, a news and trading site, called Bitcoin’s price chart “ugly” because people are worried about a bigger sell-off in cryptocurrencies.
According to some analysts, almost all cryptocurrencies from Ethereum to Dogecoin have been hit by the current market downturn and are still likely to fall further.
As the technical indicators of the encryption market become more and more worrying, encryption is once again at a major crossroads. It may quickly return to the stratosphere, or this may be the beginning of a longer-term correction, as in the definition of corrections in late 2017 and early 2018.
Encrypted into the furnace
As the supervision of cryptocurrencies continues to increase, and law enforcement agencies are increasingly involved in the cryptocurrency field due to cybercrimes, the cryptocurrency world finds itself on the edge of a cliff.
In the coming months and years, as the cryptocurrency world tries to adapt to new regulations, government oversight, and concerns about its utility as a technology, it will be tested.
In this uncertain future, it is difficult to predict the specific performance of cryptocurrencies, but as cryptocurrencies enter the melting pot, it becomes increasingly clear that the situation in the next few years will be completely different from what we see now.
Tarric Brooker is a freelance journalist and social commentator | @Avid commentator
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