[Bitcoin Now] 50 Million Won Collapses Again... US and China Both Pressure Cryptocurrency Market

U.S. Treasury: Mandatory Reporting to IRS for Cryptocurrency Transactions Over $10,000
China's Neimenggu Launches Reporting Network to Crack Down on Cryptocurrency Mining Farms

The representative cryptocurrency Bitcoin, which had fallen to the 51 million won range the previous day, rebounded to the 55 million won range. Optimists directly refuted Elon Musk, Tesla CEO's claim that Bitcoin harms the environment. According to a domestic cryptocurrency exchange official, as of 2:06 p.m. on the 18th, Bitcoin recorded 55.58 million won, up 2.83% from the previous day. It had fallen for four consecutive trading days since the 14th, dropping from the 70 million won range to 51.38 million won the previous day, but it rebounded. The photo shows the Bithumb Gangnam Center on that day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has fallen below 50 million won again. The full-scale cryptocurrency market regulations in the United States and China acted as negative factors.

According to the domestic cryptocurrency exchange Upbit, as of 2:14 PM on the 21st, Bitcoin recorded 49.9 million won, down 2.76% from the previous day. After plummeting to 42.59 million won on the 19th, it rebounded to 53.07 million won the day before but has turned downward again.

The price drop on this day was due to growing investor concerns as cryptocurrency market regulations began in earnest in various countries. According to the US economic media CNBC on the 20th (local time), the US Treasury Department announced a regulatory proposal requiring mandatory reporting to the IRS for cryptocurrency transactions exceeding $10,000 (approximately 11.27 million won). The regulation applies to cryptocurrencies, cryptocurrency exchanges, and accounts used for cryptocurrency payment services. The Treasury stated, “Cryptocurrency is being used for illegal activities such as tax evasion,” and “This plan will also include additional resources to respond to the growing cryptocurrency market.”

China also introduced strong regulatory measures. According to Chinese economic media Caixin, the Inner Mongolia Autonomous Region in northern China began operating a reporting network on the 18th to crack down on cryptocurrency mining companies within its jurisdiction. The reporting targets include not only mining companies but also companies providing sites or services to mining enterprises. This measure by Inner Mongolia was taken to block the energy consumption caused by cryptocurrency mining. China has banned cryptocurrency issuance and trading since 2017 but had not prohibited mining. As a result, many cryptocurrency mining companies entered Inner Mongolia, where electricity costs are low and labor is cheap.

Meanwhile, an analysis has been raised that the Bitcoin price has already peaked. On the 19th, the US Wall Street Journal (WSJ) claimed that the upward trend ended with the Nasdaq listing of the US cryptocurrency exchange Coinbase. WSJ analyzed, “This Bitcoin rally is similar to the 2017 cryptocurrency craze,” and “Now, with no remaining positive factors, it has started to decline.” In 2017, Bitcoin prices soared to $20,000 when the Chicago Mercantile Exchange (CME) listed Bitcoin futures products. Afterward, the downward trend began, and until the cryptocurrency craze flared up again at the end of last year, it did not exceed the 10 million won range.

This content was produced with the assistance of AI translation services.