Sunday, October 1

Bitcoin plummets 7% and falls below $40,000

Cryptocurrencies are suffering so far in 2022. Bitcoin, the most traded cryptocurrency in the world, plummets more than 7% this Friday and is trading below $40,000, to a minimum since August, after learning that the Central Bank of Russia wants to ban both the trading and mining of cryptocurrencies.

Shortly after 8 a.m., bitcoin is trading at $38,803 after falling 7.6%, which is its lowest level since the beginning of August 2021. An hour later, the fall moderates to 7%.

Another of the great cryptocurrencies, the ethereum, also falls strongly, 8%, to 2,857 dollars.

Experts explain that cryptocurrencies are affected by the possibility that the Central Bank of Russia prohibits both the sale and the mining of cryptocurrencies. Also, this market is influenced by the possibility that the US Federal Reserve (Fed) will tighten its monetary policy to combat inflation, which is leading many investors to dump shares of technology companies.

According to Bloomberg, Russia, which is home to about 10% of global Bitcoin mining activities, noted that the digital assets bear the hallmarks of a pyramid scheme and could pose a threat to the country’s financial system.

Already last year, China, which had previously enacted a ban similar to the one Russia is now deciding on, caused a huge virtual currency sell-off by posing outright antagonism towards cryptocurrencies.