Why is the crypto market down today? Read here

[ad_1]

New Delhi: The global cryptocurrency market capitalization has seen a massive drop from $1.88 to $1.7 trillion in the past 24 hours. Trading volume increased from $66.35 billion to $126 billion.

Bitcoin fell below the $40,000 price level after the crypto market tumbled following the Russian central bank’s proposal to ban cryptocurrencies in the country. Bitcoin’s market dominance remains the same at 40.51% as the coin traded at $36,579 in the morning.

BTC is down 8% at the $35,600 price level at press time, as the month continues to see cryptocurrencies struggle to give green indices. Keeping stablecoins aside, the top 100 cryptocurrencies are trading in the red with some tokens down 30%.

Etherium slipped below its $3,000 support level and is down 15% at $2,478.

Why is crypto down today?

The main cause for this massive drop is believed to be the proposal put forward by the Russian Central Bank to ban cryptocurrency. The proposal stipulates to prohibit all use and mining of cryptocurrencies on Russian territory.

According to reports, this decision was triggered due to the risks surrounding the financial stability of cryptocurrencies, the sovereignty of monetary policy as well as the financial security of its citizens,

Russia has resisted the use of crypto for years, citing terrorist financing threats, but the country still granted legal status to cryptocurrencies in 2020.

While the UK government announced on Tuesday that it plans to legislate to deal with a rise in misleading crypto-asset advertisements.

The decline in the crypto market may continue.

The Wall Street sell-off, investments like cryptocurrency and stocks in tech and growth stocks saw a massive sell-off. The move sent broader negative sentiment to the market.

[ad_2]