Why is Bitcoin falling? How Russia caused cryptocurrencies to fall below $40,000.

 recharge for free

Free shipping cards are now available

Etisalat charging cards

Orange recharge cards

Vodafone recharge cards

Telecom Egypt recharge cards

Dreamstime Russia is a key center for bitcoin mining, which is a highly energy-intensive process.

Cryptocurrency markets were in turmoil on Friday as Russia watched the bitcoin ban, while US stock sales continued to plague cryptospace.

Overall, the crypt market has lost $ 200 billion in market value over the last 24 hours, down 11% to $ 1.8 trillion.

Russia may be adding to the fear that seems to be clenching the cryptocurrencies. The country’s central bank has issued a sharp report on cryptocurrencies, including a potential ban on mining and trading. Russia accounts for about 10% of the world’s bitcoin mining capacity, making it the main network transaction processing center.

Russia’s central bank said cryptocurrencies were used for illegal activities and posed a risk to financial stability and monetary policy.

Bitcoin and other digital assets are popular in Russia. The central bank said the value of cryptotransactions of citizens is estimated at $ 5 billion a year. However, the ownership or possession of bitcoins and cryptocurrencies by private Russian citizens may still be permitted.

“The potential risks to financial stability associated with cryptocurrencies are much higher for emerging markets, including Russia,” the central bank said.

Russia can follow the Chinese path in a vigorous fight against bitcoin; Last year, Beijing banned bitcoin mining and largely banned its citizens’ trade. Both countries are also facing energy shortages and rising electricity prices, making bitcoin mining a target for both financial and energy regulators. Russia’s central bank said bitcoin mining “creates unproductive electricity consumption.”

The crypto markets did not slip at first after news from Russia. The sell-off may have been triggered by other factors, including Thursday’s late jump in US stock markets.

While bitcoin and other digital assets should theoretically be traded independently of major financial markets, they appear to correlate with other high-growth risk-sensitive investments, such as a number of technology stocks.

and

The stock spill – triggered by the Federal Reserve’s tighter monetary policy – may not be over for cryptocurrencies.

Breaking the bitcoin below the level of around $ 39,500 is also a bearish sign, says Fundstrat, by extending a two-month descending pattern that could push the bitcoin to lows from last summer around $ 29,000. “It seems that the technical damage from this week will require a little more down before it stabilizes,” says Fundstrat.

The futures market suggests that more investors are betting on the fall of bitcoin. Perpetual bitcoin futures contracts turned to more short positions – bets on declines – than bets on price gains, Fundstrat Global Advisors said in a note on Friday.

“Bears are winning against margin traders who are almost all underwater,” a report on DecenTrader said Friday. If bitcoin trades well below $ 38,000, the market could experience a “liquidation event” similar to the sharp sell-off last December 4th. This time, it could bring bitcoin down to $ 33,000.

Other technical analysts also see further declines. Bitcoin liquidation could increase due to margin challenges and forced liquidations on decentralized trading platforms, where bitcoins and other cryptocurrencies are embedded in “smart contracts” that automatically adjust to market prices. When prices collapse, contracts may automatically liquidate collateral or require additional collateral.

News Highlights Business

• Why is bitcoin falling? How Russia caused cryptocurrencies to fall below $ 40,000.
• See all news and articles from Business news updates.