It wasn’t a big surprise in the markets that the Central Bank of Russia requested a full-blown ban on cryptocurrencies on Thursday.
In fact, the Bitcoin price gained 5% for a short time after the ban was announced, and many experts mentioned that this news is not new, but has been pumped back into the market.
“It Is Not Russia’s Cryptocurrency Ban That Drops The Bitcoin Price, It Is The FED!”
Chris Vecchio, senior strategist at DailyFX, said: “The current developments seem to be related to global conditions and central banks’ withdrawal of pandemic-era aid. In my opinion bitcoin This is the main reason for the drop in price.”
The news of the ban from Moscow, due to high inflation in the USA of the FED It spread at the same time as the stock market crash, with the announcement that it would take stricter measures.
Vecchio stated that the cryptocurrency market has been acting independently of Russia for months and is mostly correlated with high-growth, low-profit tech companies in the US.
The latest development in this direction was also confirmed by investors selling their cryptocurrencies and speculative technology company shares on Friday, fearing that the FED will raise interest rates. On the same day, the Bitcoin price dropped 10% to below $38,000.
About Bitcoin’s silence against the threat from Russia, some experts pointed to a similar initiative by China last year.
Alex Lemberg, CEO of decentralized finance (DeFi) platform Nimbus, expressed his thoughts on the subject as follows: “It can’t matter if Russia bans cryptocurrencies after a crypto giant like China has introduced a full-blown ban. It was China’s ban on cryptocurrencies that truly wreaked havoc in the industry. When this ban came, China was described as the largest Bitcoin country in the world. When we look at the current position of Russia, we see that it is only in the third place in the field of BTC mining.”
GlobalBlock analyst Marcus Sotiriou claimed that any ban by Russia would benefit other countries adopting digital assets. According to Sotiriou, if Russia takes such a step, BTC miners will migrate to other crypto-friendly countries.
*Not investment advice.