Bitcoin and Ethereum prices have fallen, and the US dollar index peaked in 16 months after Twitter's CFO decided to release the cryptocurrency investment.

With the impact of the rising US dollar and the announcement of new tax laws, recommendations from Twitter CFO Ned Segal will give investors a reason to reduce their risk to a reasonable level. Segal said price volatility and lack of financial control were the main reasons the company had not included cryptocurrencies in its capital.

Twitter's CFO's anti-crypto remarks caused a lot of upheaval in the market, with Bitcoin, Ethereum and other major cryptocurrencies facing a sell-off. The continued strength of the US dollar index could contribute to the Air Force.

According to data from CoinDesk, Bitcoin fell 4.3% from around $ 60,800 that day, while Ethereum fell 5.3% to $ 4,320 at the time of the press release. Litecoin, Binance Coins, PolkaDOT's DOT token and the famous DeFi coin have all suffered larger short-term losses.

The Wall Street Journal quoted Twitter co-founder CFO Ned Segal as saying that investing cash in crypto assets like Bitcoin is currently "not profitable."

Segal said price volatility and lack of financial control were the main reasons the company had not included cryptocurrencies in its portfolio.

No one expects Twitter to announce a cryptocurrency investment, but Segal claims to be following a rise in the US currency and a crypto-tax dispute over a $ 1,000 billion bipartisan infrastructure bill. dollars signed by US President Biden on Monday. The employee gave reasons for the risk management.

The Infrastructure Act requires employees to provide the IRS with information about customers with sales over $ 10,000. In this regard, the crypto industry is concerned that the meaning of the word "broker" is so broad that it can place minors and employees in the tax administration and design tax evasion problems for them. Investors.

Many companies, including Square, Tesla, and MicroStrategy, have embraced Bitcoin as an asset, but for now, overall market leadership is still elusive. Analysts told CoinDesk on Monday that the very cheap price of Bitcoin was a delay in trading market capitalization or investments that need to be safe.

The US dollar index, which tracks the value of the US dollar against key gains, hit a 16-month high at 95.50 earlier today, fearing the Fed might raise interest rates sooner . Interest rates often favor homemade gains and lead to frustration with gains seen as inflationary, like Bitcoin and gold. Therefore, inflation in the United States is considered negative for cryptocurrencies.

China's National Development and Reform Commission said on Tuesday that in the next phase of its crackdown on cryptocurrency mining, it would decide to make it "expensive" for some cryptocurrency mining farms. China tightened its anti-dumping efforts in May, and during the quarter declared bitcoin, ether, and cable illegal.

Analysts say Bitcoin could fall further in the near term.

Matthew Dibb, COO and Co-Founder of Stack Funds, said: “We have seen huge sales and new short positions on the Bitfinex cryptocurrency exchange. So far there have been no errors in the process. A long job has taken place. them, and income is almost stable, but without strength we can see BTC cool further in the short term when it starts to deteriorate.

Martin Cheung, an options trader at Pulsar Trading Capital, said the decline signified a reversal and could be linked to $ 60,000 or $ 55,000.

Chung said in an interview with CoinDesk “We have seen a short period of entry into the options market since last week,” Chung said in an interview with CoinDesk.

The given slope measurement option provides the value associated with the record. The positive results indicate that there is a greater need for a downside option or protection.

One-month unreliable records fell from -2% on Monday to a four-week high of 5%, according to data provided by crypto derivatives research firm Skew. The weekly rate went from 1% to 6%.

It could be even lower after Tuesday if US stock market data is better than expected and Fed leaders start issuing inflation warnings, which should heighten concerns about inflation and the strengthening of the market. American dollar.

According to FXStreet, sales data to be released at 1:30 p.m. UTC (8:30 a.m. ET) may show that the consumer market in the world's largest market could grow 0.7% month-over-month in October.

Atlanta Fed Chairman Rafael Bostic, Richmond Fed Chairman Thomas Barkin, Philadelphia Fed Chairman Patrick Harker, and San Francisco Governor Mary Daly spoke to States -United.

Chinese President Xi Jinping and US President Biden met online Monday evening. The market is still waiting for the translation of the meeting and the notice seems good.

Also on Tuesday, Reserve Bank of Australia chairman Philip Lowe said there was no reason to increase prices in 2022, new data and forecasts show.