#ReboundRally Bitcoin (BTC) was hovering around $40,000 after losing some of the gains from a forceful rebound earlier Thursday.
The largest cryptocurrency by market capitalization at one point surged as high as $43,000, regaining almost all of the ground lost during Wednesday's 14% price plunge, which was the biggest single-day decline in 14 months.
Shortly after 16:00 coordinated universal time (12 p.m. ET), bitcoin dropped about 5%. That move roughly coincided with the publication of a U.S. Treasury report calling for businesses that receive transfers of more than $10,000 in cryptocurrencies to report them to the Internal Revenue Service.
“There are definitely still some downside risks left short term, and markets rarely rebound in one single move up,” said Jean-Marc Bonnefous, managing partner of investment firm Tellurian Capital. “Political noise, with news of tax rules tightening, is still weighing on a prompt recovery.”
$BTC