Late January saw Bitcoin prices drop by over 7% due to Russia’s blanket cryptocurrency ban

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Since Thursday of this week, bitcoin prices have been steadily declining. At about $38,5774, the cryptocurrency has lost more than 7% of its value. Since the beginning of the year, the largest cryptocurrency by market capitalization has plummeted about 14% (YTD). Investors around the world are pessimistic about the coin.

Not just Bitcoin but also the majority of other prominent cryptocurrencies are on the edge of collapsing. By market capitalization, Ether is the second most valuable cryptocurrency. Since yesterday, this coin has likewise lost 8% of its value. The currency dropped to roughly $2,809.51, a significant loss for Ether.

Wall Street, the Nasdaq, and the S&P 500 all sank dramatically for three weeks. The crypto-fall has been impacted as a result of this. The yield on the 10-year US Treasury note, on the other hand, increased little this week.

As a result, investors seek refuge in government bonds, which carry a lower risk. These are the two most important factors behind cryptocurrency’s current market decline.

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Furthermore, Russia’s blanket prohibition on cryptocurrency has driven the cryptocurrency sector to the brink. According to reports, the world’s largest crypto miner now believes that digital currency poses a threat to “financial stability and monetary policy sovereignty.”

The CoinDCX Research Team claims that “The digital asset market fell back into the reds after Russia, one of the world’s top crypto adopters, announced intentions for a blanket ban on crypto. BTC and ETH both fell sharply in the last 24 hours, falling 2.54 percent and 3.62 percent, respectively. With yet another economic giant taking a firm stance against crypto, other altcoins such as BNB, ADA, and SOL have also taken a hit.

While this is cause for concern, the crypto business has withstood numerous prohibitions, limitations, and governmental scrutiny over the years and continues to thrive. We can expect the sell-off to have a minimal long-term influence on crypto’s performance besides this temporary drop, based on how the sector recovered back immediately after China’s crypto ban.”.

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