Signs the crypto market is recovering after a volatile week

It seems the crypto market is slowly recovering after slumping over recent days

Bitcoin at one point was at the low $30,000 mark but at least for now, it’s retaken the $40,000 mark.

A rebound in Bitcoin has held strong even as the U.S. Treasury Department called for new rules.

The department has called for regulation that would require large cryptocurrency transfers to be reported to the Internal Revenue Service.

The comments from U.S. officials come one day after a brutal sell-off on concerns over tighter regulation in China.

Elon Musk has also been one to blame for the turbulent ride for Bitcoin, after his company, Tesla suspended transactions using the crypto. The electric car company, Tesla admitted they remain concerned with how much energy Bitcoin uses.

Crypto’s notorious volatility appears to be on the rise. On Wednesday, Bitcoin’s 30-day volatility went over 80% for the first time since March. Ethereum was even more volatile.

US investors to report to the tax office

The Biden administration has revealed new measures that will require crypto investors to report their digital earnings to the US tax office

Cryptocurrency transfers of more than $10,000 will need to be flagged with authorities, as Biden moves to tighten regulations surrounding the currencies.

These new measures are designed to prevent tax evasion within the underregulated sector, and come one day after China revealed it would also be cracking down on the crypto market.

The price of Bitcoin fell 5 percent after the announcement, following a week of disastrous slumps for the world’s most popular crypto.

Chair of the US Federal Reserve, Jay Powell says authorities should be“paying attention to private-sector payments innovators who are not within the traditional regulatory arrangements applied to banks and other financial institutions”.