Bitcoin has more than doubled this year, while Ether is up about six-fold Image Credit: Screengrab

Cryptocurrencies fell on Tuesday, with Bitcoin sliding below $60,000 and Ether at its lowest levels this month.

The largest digital token dipped as much as 8.2 per cent to $58,661. Second-ranked Ether tumbled more than 10 per cent. Global crypto market cap has dropped some 10 per cent in the past 24 hours to $2.7 trillion, according tracker CoinGecko.

Technical indicators had suggested the strong run of late across the notoriously volatile market was due for a pause.

Some analysts also attributed the dip to new tax-reporting requirements for digital currencies that are part of the $550 billion infrastructure bill, which US President Joe Biden signed into law on Monday.

"We've seen the US infrastructure bill get signed, which has initiated a selloff from traders who are concerned about regulation and taxation," said Hayden Hughes, chief executive officer of Alpha Impact, a social-trading platform.

Hughes also cited concerns about China continuing its regulatory crackdown. The country will study the option of levying punitive power prices for companies that are involved in cryptocurrency mining, National Development and Reform Commission spokeswoman Meng Wei said at a press conference.

Bitcoin has more than doubled this year, while Ether is up about six-fold. Both scaled records last week amid a fervor for digital assets driven by speculative demand and controversial arguments that they can hedge inflation risks.

It "would be unusual to keep moving up without corrections," said Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore. He argued that "we're seeing a healthy pullback" after a prolonged rally.