The world’s most popular and valuable cryptocurrency Bitcoin fell more than 7% to $38,869. Since the beginning of 2022, it has lost more than 14% of its value, hit by investors’ weakening sentiment.
Meanwhile, the global cryptocurrency market cap fell over 5% today at $1.98 trillion, pulled down by the crypto price drop. On the other side, Ethereum fell below the $3,000 barrier. At $2,858, it was down to more than 9%. However, last year, the token grew by 400 percent, compared to 60 for Bitcoin, but it is already down over 18% in January.
Similarly, the price of Dogecoin dropped over 7% to $0.1527, while the price of Shiba Inu dropped approximately 8% to $0.00002553. Similarly, Binance Coin was down 10 percent at $428. Other cryptocurrencies, like as Cardano, have lost over 11 percent, while XRP, Polkadot, Tether, Litecoin, Solana, Terra, and Stellar have all lost 3-10 percent in the last 24 hours. As scepticism against the rapid expansion of digital assets grows around the world, the crypto industry has experienced multiple governmental setbacks in recent days.
What is the Reason behind this?
The US Securities and Exchange Commission’s assault on digital assets is expected to target crypto exchanges in 2022. Russia’s central bank is also considering a ban on Bitcoin mining and crypto trading. Following China and Kazakhstan, Russia has become the third country to tighten down on cryptocurrencies since the previous year. According to a report, the proposal would prohibit the issuance and circulation of cryptocurrencies, crypto-exchanges, crypto-exchangers, and peer-to-peer (P2P) platforms within the Russian Federation’s borders, as well as impose penalties for violators.
The central bank has stated that the rise of crypto poses a threat to Russia’s financial system and the ruble’s stability. According to the bank, the ban is expected to lessen these threats. The current quick bubble was a speculative financial pyramid that jeopardised Russia’s financial stability, as the bank claimed that prohibiting crypto mining was the best solution.
To get the updates about cryptocurrencies, follow Clout News on social media and don’t forget to subscribe to our Newsletter. If you have any queries, let us know in the comment section below!