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    Crypto news: BTC crashes after Russia crypto ban proposal

    By Daniela Ešnerová


    Updated

    Coins with bitcoin (BTC) logo and chart and arrow indicating downwards market movements.
    Bitcoin (BTC) plunged as low as $38,560 – Photo: Shutterstock

    Bitcoin (BTC) has lost its support of late and crashed to $38,560 ($28,427) in London morning hours, data from CoinMarketCap.com showed. The cryptocurrency stalwart was trading at its lowest since 3 August, 2021. The whole market plunged 7% over the last 24 hours. 

    The sell-off follows Russia's central bank proposing a ban on cryptocurrency on 20 January. The bank cited threats to its monetary policy sovereignty as reasons behind the proposed ban, which would see cryptocurrency mining as well as ownership prohibited.

    Russia is one of the crypto capitals in the world. It takes up 11,23 average monthly hashrate, according to The Cambridge Bitcoin Electricity Consumption Index. It is the world's third largest crypto mining country. Russia is also one of the countries with the widest cryptocurrency ownership. With 17 million Russian cryptocurrency owners making 11.91% of the population, Russia has the second highest percentage of crypto owners after Ukraine.

    Confidence in the space was down in the wake of the latest sell-off. Cryptocurrency Fear and Greed Index, which is calculated based on volatility, social media trends, market momentum, dominance and trends, shows the market continues to be cautious.

    Some crypto proponents looked for signs of positive news. Founder of cryptocurrency educational firm Eight and analyst, Michaël van de Poppe, pointed out that bitcoin's RSI (relative strength indicator) was down, indicating that the oldest cryptocurrency was 'oversold'.

    BCH/USD

    481.40 Price
    -0.320% 1D Chg, %
    Long position overnight fee -0.0753%
    Short position overnight fee 0.0069%
    Overnight fee time 21:00 (UTC)
    Spread 2.50

    DOGE/USD

    0.15 Price
    -0.600% 1D Chg, %
    Long position overnight fee -0.0753%
    Short position overnight fee 0.0069%
    Overnight fee time 21:00 (UTC)
    Spread 0.0012872

    XRP/USD

    0.53 Price
    -1.090% 1D Chg, %
    Long position overnight fee -0.0753%
    Short position overnight fee 0.0069%
    Overnight fee time 21:00 (UTC)
    Spread 0.01168

    ETH/USD

    3,154.19 Price
    +0.590% 1D Chg, %
    Long position overnight fee -0.0616%
    Short position overnight fee 0.0137%
    Overnight fee time 21:00 (UTC)
    Spread 6.00

    "Ideal ingredients for a bullish divergence (need) to be created in the coming weeks," he concluded.

    Poll of the day:

    Plan B, Dutch economist and creator of the Bitcoin Stock-to-Flow model, asked his followers what could be the next catalyst for bitcoin:

    What is your sentiment on BTC/USD?

    64650.50
    Bullish
    or
    Bearish
    Vote to see Traders sentiment!

    Top coins by market capitalisation

    As of 09:15 UTC:

    Winners and losers

    • Terra (LUNA) was down 4.75% over the last 24 hours, and 0.24% over the last week
    • Solana (SOL) lost 8.42% over the last 24 hours and 14.10% over the last week

    Read more:  Will the crypto market decline continue in 2022?

    Markets in this article

    BNB/USD
    Binance Coin / USD
    618.69 USD
    5.41 +0.890%
    BTC/USD
    Bitcoin / USD
    64650.50 USD
    392.35 +0.610%
    ETH/USD
    Ethereum / USD
    3154.19 USD
    18.34 +0.590%

    Related topics

    #Cryptocurrency #Bitcoin

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    The difference between trading assets and CFDs
    The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
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