Between last week and now, the prices of Bitcoin and Ether have plunged causing crypto markets to lose value. The cryptocurrency market has lost about $130 billion in the last 24 hours, thanks to the price of major cryptos falling, according to numerous reports.
Last week, the Central Bank of Russia Federation, Russia’s apex bank proposed banning the use of and mining of cryptocurrencies in the country citing a number of reasons for its proposal including threats to financial stability, the country’s monetary policy sovereignty, the wellbeing of citizens, etc. The cryptocurrency has about half of its value wiped off from a November high of $68,053.34.
As per data from CoinDesk, Bitcoin was down 6 percent at $33,352 at 6 a.m. ET, its lowest since July 24, 2021, and is around 51 percent off its record high hit in November. On the other hand, Ether fell 12 percent at $2,218.37, its lowest since late July, and is down 53 percent from its all-time high set in November.
The trends in Bitcoin has also been attributed to sell-offs of tech stocks, apart from the recent plan to ban cryptocurrency by Russia. Investors are preparing for a stricter monetary policy from the US Federal Reserve and higher interest rates.
According to Vijay Ayyar, Vice President of Corporate Development and International Expansion, “BTC (Bitcoin) and crypto have been reacting much more violently, given the nature of the asset class and we’re likely to test 30-32K given current sentiment and momentum. But for the market to really be bullish will take a while, given the lack of confidence across the spectrum”.
The recent trends in the crypto market have been raising a lot of eyebrows and many investors are concerned about the patterns. With many countries looking to ban crypto and regulations relating to cryptocurrencies bound to increase, investors are really concerned.
As of the time of this writing, the world’s largest cryptocurrency Bitcoin was trading at $33906.90, while the second-largest cryptocurrency Ether was trading at $2,260.55.