Bitcoin Price: Crypto Drops $1.9 Trillion Following US, Russian Ban Crackdown

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The cryptocurrency has lost half of its value since its November highs and there are fears that it has not even bottomed yet.

Bitcoin has had a few days of horror, with the price of the blockchain dropping 20% ​​in the past week.

The current 24-hour low for the coin was US$34,784 (AU$48,300), which is a 50% drop from its November all-time high of US$69,000 (AU$96,000).

In total, the cryptocurrency market has lost US$1.4 trillion (A$1.9 billion) in just two months since its combined market cap of $3 trillion last November,

As of Monday morning, Bitcoin had fallen a bit more, down 0.1%, now sitting at US$35,239.47.

In fact, Bitcoin’s year-to-date returns are minus 24%, meaning if you invested at the start of the year, you’ve already lost a quarter of your money.

Other top cryptocurrencies are also feeling the sting, with the second most valuable coin, Ethereum, down 27% from last week.

At the time of writing, the ETH blockchain was trading at US$2,413 (AUD$3,300), down almost 30% since the start of the new year.

Cardano and Solana and also fell drastically over the past seven days, dropping 23% and 34% respectively.

BNB Binance is down 26.5%, Ripple XRP plunged 22% and hypecoin Doge suffered a 21% loss in one week.

And experts say it will get worse.

Chris Weston, head of research at Melbourne-based market analyst Pepperstone, told The Australian that no one is rushing to buy crypto because it doesn’t look like easy gains are on the horizon.

“It’s getting lower and lower, and you have to ask yourself, why would you buy now?” he said.

“You don’t buy when it’s down; you wait for the price to stabilize.

The financial professional said he expected the coin to fall below US$30,000 (AUD$41,000) before losing momentum on the downside.

He wasn’t the only one to think so.

“The mass marketing of bitcoin reminds us of the activity of stockbrokers on the eve of the crash of 1929,” Paul Jackson, global head of asset allocation at US investment firm Invesco, wrote in a note last week.

“We think it’s not a stretch to imagine bitcoin falling below $30,000 this year.”

Mudrex CEO and co-founder Edul Patel said the current dive bomb has left casual investors in a state of panic. This causes them to cash in and perpetuate the cycle.

“The downtrend risks putting investors in a chaotic situation. The fall of major cryptos can be attributed to lower demand, inflation, and seasonality. The coming week would be vital for the crypto spectrum,” he told the

Economic times.

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As for the reason for the seemingly sudden accident, it’s been brewing for a while.

Crypto investors are in panic as tougher regulations on unusual digital assets hit the market.

The US Federal Reserve raised rates this year, and at the same time Russia floated the idea of ​​banning crypto mining and trading.

The combination of the two caused prices to plummet.

Russia, the world’s third largest bitcoin mining center, proposed to ban the use and mining (creation) of cryptocurrencies last week.

Cryptocurrency mining and trading runs counter to Russia’s green agenda and can be used to launder money or finance terrorism, according to a report released by the country’s central bank on Thursday.

According to the proposal, cryptocurrency could not be created, mined or traded on Russian soil, including preventing customers from using crypto exchanges.

If Russia’s proposal goes ahead, it would be a blow to the cryptocurrency market worldwide.

Russian citizens make up the third largest number of crypto miners, behind the United States and Kazakhstan.

Read Related Topics: Cryptocurrency

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