Bitcoin and Ether are in general decline from recent record highs.

This year, Bitcoin has more than doubled, while Ether has more than sixfold increased.

In a broad retreat from recent record highs, cryptocurrencies fell on Tuesday, with Bitcoin briefly falling below $60,000 and Ether reaching its lowest level this month.

The largest digital token shook traders, falling as much as 8.2 percent before cutting the loss in half. The drop to $58,661 was the steepest intraday drop since September 24. Second-placed Ether fell more than 10% before recouping its losses. According to Coin Gecko, the global crypto market cap has dropped 10% in the last 24 hours to $2.7 trillion.

"We are seeing a significant pullback after several days of gains, which saw Bitcoin hover near its all-time high while many other altcoins managed to reach new highs," said Walid Koudmani, an analyst at XTB Market. "The market's extreme volatility could lead to a potential domino effect if more negative news emerges and drives prices to new lows."

Crypto-related stocks were also hit, with shares of Coin base Global Inc., a crypto exchange, falling nearly 4% at one point. MicroStrategy Inc., Marathon Digital Holdings Inc., and Riot Blockchain Inc. were all downgraded as well.

Technical indicators had suggested that the recent strong run in the notoriously volatile market was about to come to an end.

Some analysts also blamed the drop on new tax reporting requirements for digital currencies, which are part of the $550 billion infrastructure bill signed into law by President Joe Biden on Monday.

"We've seen the United States infrastructure bill signed, which has triggered a selloff from traders concerned about regulation and taxation," said Hayden Hughes, CEO of Alpha Impact, a social trading platform.

The law imposes new reporting requirements on cryptocurrency "brokers," such as Coin base, who regularly provide services involving digital asset transfers. Under the new rules, those businesses must now provide the IRS with information on their customers, such as their name, address, and phone number, as well as the gross proceeds from sales and any capital gains or losses.