What Causes the Historic Drop in Bitcoin?

Yesterday, the leading cryptocurrency of bitcoin We mentioned that (BTC) had the worst start of the new year in its history. Bitcoin, which fell to $ 38 thousand on Friday, fell to $ 35 thousand last night and saw its lowest level since the summer.

The loss of more than 20% of the leading cryptocurrency also hit other cryptocurrencies. This situation, as can be expected, caused many investors to lose thousands of dollars and the market was turned upside down. So, why is this decline in Bitcoin, which has reached the highest level in history by exceeding $ 68 thousand in the past months? Let’s have a look.

Pandemic and country decisions were effective

In the first days of 2022 US Federal Reserve (FED) cut the emergency support and seemed ready to move away from the monetary policies towards the pandemic affected the market. In addition, with the new year, the world started to swept away. Omicron It is possible to say that the variant also affects the markets significantly.

It is stated that the Fed’s preparations to raise interest rates may also affect the markets. According to Sözcü, some investors think that cryptocurrencies are a hedge against inflation; However, high volatility and risks make people leave the market on the days when such news comes out. keeping away.

Events in ‘mining paradise’ Kazakhstan hurt the market

Of course, after China’s ban on cryptocurrencies, it is described as the new center of mining. in Kazakhstan It is possible to say that the events that took place may have also affected the market. Starting in the country after the government’s hike decisions protestsThis caused the disruption of mining activities in the country and affected the cryptocurrency market.

In addition, the nationwide internet interruptions severely impacted mining operations. These events and outages also caused mining devices to fail and millions of dollars in damage, and caused the leading cryptocurrency Bitcoin to take big hits.

Russia wants to ban cryptocurrencies

In addition, there were statements from Russia that could affect crypto currency exchanges. Central Bank of Russia, recently announced that crypto currency trading, mining and exchanges in the country to be banned expressed his wish. In the report published on the subject, it was stated that the transactions carried out by Russian citizens with cryptocurrencies amounted to up to 5 billion dollars annually.

Russian officials say that cryptocurrencies limiting the dominance of monetary policy. risks arising from these currencies when transferring illegal highlighted the activities. In addition, it was underlined in the report published by the central bank that cryptocurrency mining activities could harm the country’s energy consumption and environmental plans.

The UK and the US may also make new decisions for cryptocurrencies

Finally, statements about cryptocurrencies came from the United Kingdom and the USA. The UK government said in a statement earlier this week,misleading cryptocurrency adsHe stated that he plans to impose restrictions on . In the statements made by the authorities, “Cryptoassets may provide an opportunity for people to invest; however, assets presented with misleading claims may cause harm to these people. We aim to ensure consumer protection while supporting crypto innovation.” expressions were used.

The United States government has also recently made statements regarding digital assets. The government, led by President Joe Biden, is set to launch a new digital asset market within the next month. strategy will publish; He also stated that while this strategy is being formed, possible risks and opportunities will be evaluated.

In short, what has happened in Bitcoin (BTC), which is currently traded at 36 thousand dollars, has been happening since November. over $1 trillion It is possible to say that this sharp decline, which caused losses, may have arisen due to statements from countries and other events.