Under the influence of the infrastructure bill, Bitcoin was suppressed by short sellers, and the options market was bullish against the trend

Last weekend, Bitcoin's rise stagnated and began to bear the pressure of shorts. The US infrastructure bill proposal once again brought uncertainty to the future regulatory route, and some investors hastily left the market in panic. Bitcoin shorts formed a strong resistance level at $42,000. According to Bitpush data, as of press time, the price of Bitcoin was 39585.59, a daily decline of 3.37%.

Daniel Kim, head of capital markets at Australia-based decentralized lending company Maple Finance, told Yahoo Finance that Bitcoin’s pullback from Saturday’s top of around $42,400 to its current price of around $39,500 could be related to uncertainty surrounding the bill.

BitPush reported on Monday that an updated version of the U.S. Senate's bipartisan infrastructure bill narrowed the definition of "brokers." The Senate is debating the bill, which would provide about $1 trillion in funding for infrastructure improvements across the country, part of which would come from about $28 billion in taxes generated by crypto transactions. An earlier version of the bill attempted to achieve tax purposes by increasing information reporting requirements and expanding the definition of "brokers" to include any party that may interact with cryptocurrencies, even decentralized exchanges or other non-custodial service providers.

But under the latest draft of the bill, only those who provide digital asset transfers can be considered brokers. In other words, the language now does not explicitly include decentralized exchanges, but it also does not explicitly exclude miners, node operators, software developers, or similar parties.

Kim said, "This ultimately created a lot of fear, uncertainty, and doubt, and users were influenced by FUD and tended to move their funds away from the platform, which further reduced the liquidity of the crypto market and further hit the price of the currency. The instability of the market is also reflected in the fact that the Bitcoin reserves of cryptocurrency exchange FTX almost doubled in July, while Binance's reserves fell by 70,000."

Previously, Bitcoin had been making significant progress towards the resistance level near $42,000 since July 21, and on Sunday it became a 10-day rising trend, which is Bitcoin’s longest winning streak in nearly eight years.

The bill, which is being debated in the Senate, seeks to bolster tax revenues in order to fund more than $1 trillion in infrastructure improvements across the country, $28 billion of which would be collected through a cryptocurrency tax.

U.S. Senator Drew Nirenberg said, “This legislative language will not redefine digital assets or cryptocurrencies as ‘securities’ for tax purposes, will not violate the privacy of individual cryptocurrency holders, and will not force non-brokers such as software developers and cryptocurrency miners to comply with IRS reporting obligations. It simply clarifies that any person or entity that acts as a broker by facilitating transactions and accepting cash for customers must comply with standard information reporting obligations.”

The reaction in the options market was slightly different. According to data from Coinbase Bitcoin Options, there has been a growing interest in buying call options with strike prices between $40,000 and $50,000.

According to data from Bitpush Terminal, the top 20 cryptocurrencies by market capitalization all fell to varying degrees, with DOT, LINK and SOL seeing the largest declines, with intraday declines of 3%-4%.