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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'.

BTC/USD

66,751.30 Price
-0.440% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

DOGE/USD

0.13 Price
+6.140% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,506.58 Price
-0.090% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

SOL/USD

170.54 Price
+0.030% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

"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?

66751.30
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
599.88 USD
-0.97 -0.160%
BTC/USD
Bitcoin / USD
66751.30 USD
-296.7 -0.440%
ETH/USD
Ethereum / USD
3506.58 USD
-3.08 -0.090%

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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.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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