Bitcoin price: Crypto market plummets over $200 billion as world governments step in

The cryptocurrency market has suffered another “chaotic” 24 hour period, with $200 billion wiped off the market overnight.

The cryptocurrency market has suffered another brutal day, losing over $200 billion in value over the past 24 hours with major coins copping the worst of the crash.

Bitcoin and Ethereum, the world’s two most-traded digital assets, went into another freefall on Wednesday, with smaller coins BNB, Solana, Cardano and XRP also suffering significant losses.

Bitcoin’s price crashed almost 10 per cent over the last 24 hours, dropping to under $54,000 (AUD) for the first time in well over six months.

The price of ethereum, BNB, solana, cardano and XRP also experienced significant drops of between 7 to 11 per cent in the last 24 hours.

Still in its relative infancy, the cryptocurrency market has faced similar tumultuous periods where large chunks of value disappear overnight.

Experts in the field believe values have dropped as a result of the US Federal Reserve raising rates in 2022, alongside heightened pressure from China and Russia to stifle digital currency trading within their borders.

The Chinese government’s widespread crypto ban in 2021 saw the country expel those who use high-powered computers to mine new coin. The result sent bitcoin and crypto prices spiralling, with the downward trend continuing steadily in the first few weeks of 2022.

“I think the main reason for this is the market being spooked by the Federal Reserve raising rates this year, but when the stock market sees some relief, I expect a strong squeeze to the upside for bitcoin and the whole market,” analyst at UK-based broker GlobalBlock Marcus Sotiriou wrote this year.

The wild west nature of the crypto sphere has attracted millions of new investors buying in over the past 12 months. A brief period in early 2022 saw Bitcoin break new ground, soaring to over $80,000 AUD per coin after Elon Musk’s persistent endorsement of the revolutionary technology.

CEO and Co-founder of Mudrex Edul Patel says the current dive-bomb, which he believes has come from a lack of demand amid soaring inflation in the West, has left casual investors in a state of panic.

“The downward trend is likely to put investors in a chaotic situation. The fall of significant cryptos can be attributed to lower demand, inflation, and seasonality. The coming week would be vital for the crypto spectrum,” he told the Economic Times.

In Russia, life is about to get a lot harder for those deep in the crypto sphere, with the government making serious moves against what has become a $7 billion yearly market in the country of 143 million.

According to a report released by the country’s central bank on Thursday local time, cryptocurrency mining and trading goes against Russia’s green agenda and can be used in money laundering or to finance terrorism.

Cryptocurrency has a lot in common with a pyramid scheme, according to the bank, which also called for crypto rule breakers to face the full penalty of the law.

Although the bank’s suggestion to clamp down on cryptocurrency is just that — a suggestion — Russia appears to be fast-tracking parliamentary sessions so that a potential ban could come into effect as soon as possible.

Speaker of the lower house of parliament Vyacheslav Volodin revealed this week that politicians were creating a regulatory framework on cryptocurrency that will be ready in time for the Russian parliament’s spring session.

Under the proposal, cryptocurrency wouldn’t be able to be created, mined or traded on Russian soil — including blocking customers from using crypto exchange platforms.

Russians with offshore accounts would still be able to trade cryptocurrency.

If Russia’s proposal to go ahead, it would be a major blow to the cryptocurrency market around the world.

Russian citizens make up the third-largest number of crypto miners, behind the US and Kazakhstan.

Blockchain miners have made the most of Russia’s unique resources to maximise their mining, with people flocking to the country’s north and Siberia to mine blockchain, because power is cheap over there.

“Potential financial stability risks associated with cryptocurrencies are much higher for emerging markets, including in Russia,” the central bank said.

But according to the research team at CoinCDX, India’s largest crypto trading platform, digital assets have endured years of similar suppression from world governments, tipping the decentralised currencies to rise again in the future.

“As Russia-one of the largest crypto adopters in the world-announced its plans for a blanket ban on crypto, the digital asset market plunged back into the reds. BTC and ETH took sharp dips, dropping 2.54% and 3.62% respectively over the past 24 hours,” CoinCDX said in a statement.

“Other altcoins from BNB, ADA, and SOL also nosedived with yet another economic powerhouse taking a hard stance against crypto.

“While this may be a cause for concern, the crypto industry has weathered through multiple bans, restrictions and regulatory scrutiny over the years but have stood the test of time.

“Looking back at how the sector bounced back shortly after China’s crypto ban, we can expect the sell-off to have little long-term impact on crypto’s performance besides this brief initial dip.”

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Tracking cryptocurrency news from around over the world

Most cryptocurrencies are down 7-10% today as global financial markets experience a red day

Use promocode TNM51 at www.giottus.com/profile#promo after registration to get Rs.51 worth free Bitcoin.

Bitcoin has, for the first time in 2022, dipped below the psychological support level of $40,000 today reflecting the larger bearish sentiment among the market participants. Overall crypto market slid by more than 8% today as global financial markets reacted in the red to lingering concerns of interest rate hikes by the US Federal Reserve. Crypto market is expected to go lower in the next 2 weeks before a strong relief rally can bring positive momentum back. Investors are advised to remain patient as Q1 2022 promises to be a volatile ride. However, these prices may also indicate a great buying opportunity for the future.

In this article, we will take a brief look at the events that influenced the cryptocurrency markets this week.

Regulations and Hacks in Crypto

Russia, home to a thriving crypto mining industry, has proposed a blanket ban on the use and mining of all cryptocurrencies. The Central Bank of Russia has claimed that crypto resembles a pyramid scheme and undermines the sovereignty of monetary policy. Already having banned the usage of crypto for payments, the bank stated that mining is hurting the country’s green agenda and endangering Russia’s energy supply. It is imperative to note that more than 7 trillion rubles ($92 billion) of assets are held in about 17 million crypto wallets in Russia.

Crypto.com, a Singapore-based crypto exchange, faced a security breach this week after several users made complaints that their assets were stolen. According to estimates, around $34 million has been compromised due to transactions that were being authorized without the two-factor authentication (2FA) control being entered by the user. The exchange has credited all the lost coins to its users.

NFTs gain traction

One of the biggest challenges for mainstream adoption of non fungible token (NFTs) has been the current complexities associated with buying and selling a NFT as most of the existing NFT marketplaces only support crypto payments. To tackle that, US-based cryptocurrency platform Coinbase has announced that it is working with multinational financial services firm Mastercard to allow users to buy NFTs using cards.

Twitter launched a tool yesterday through which users can display their NFTs as their profile pictures. The feature is currently available only on iOS that allows users to connect their twitter accounts to crypto wallets that contain the NFTs. Twitter will display NFT profile pictures as hexagons as opposed to circles that are available to other users. Following suit, Meta is also looking to capitalize on the NFT craze as news sources claim they are developing ways to create, display and sell NFTs on Facebook and Instagram. Meta is also reportedly working on a marketplace to buy and sell NFTs.

Bored Ape Yacht Club (BAYC), the NFT art which had recently caught the attention of many celebrities all around the world continues to impress more as top tennis player Serena Williams and football star Neymar Jr posted BAYC apes in their twitter accounts. Neymar paid $1 million for the NFT while Serena seems to have received it as a gift.

NY Mayor Gets Bitcoin

New York City Mayor Eric Adams has announced that his first paycheck will be automatically converted into cryptocurrency via Coinbase Global. The Mayor had said last year that he would receive his first three paychecks in Bitcoin and vowed to make New York a centre of crypto innovation.

Disclaimer:This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

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Bitcoin Crash: Top cryptocurrency prices today: Bitcoin dips below $40,000, other altcoins bleed

New Delhi: The bleeding in crypto tokens continued on Friday as Russia proposed banning the use and mining of cryptocurrencies on Russian territory. The pain in altcoins intensified following the news, which tanked higher.

Russia must ban cryptocurrencies, the country’s central bank said in a report released Thursday. The report says cryptocurrencies are volatile and widely used in illegal activities such as fraud.

The sluggish macroeconomic conditions, rise in oil prices and tapering cues from the Federal Reserve, rising inflation and slump in technology market added to woes of traders.

Barring Terra and dollar-pegged stablecoins, all other seven out of top-10 digital tokens were trading lower during early trade on Thursday. Cardano posted double-digit cuts.

The global crypto market cap tanked more than 5 per cent and slipped to $1.87 trillion mark, thanks to constant selling. Also, the total crypto market volume dropped over 11 per cent to $66.73 billion.

Bitcoin once again slipped below the $40,000 mark and Ethereum slipped below $3,000 level. All top 20 tokens were trading in red at the time of writing this report.

What’s cooking in India?
India’s crypto investors and platforms are awaiting the upcoming Budget for clarity on regulations and taxations.

While the regulations and the bill related to it has taken a back seat for a while, India is likely to levy high tax rates between 30-40 per cent on crypto assets, suggests various reports.

Expert’s Take
As Russia, one of the largest crypto adopters in the world, announced its plans for a blanket ban on crypto, the digital asset market plunged back into the red, CoinDCX Research Team.

Other altcoins also nosedived with yet another economic powerhouse taking a hard stance against crypto, it added. “While this may be a cause for concern, the crypto industry has weathered through multiple bans, restrictions and regulatory scrutiny over the years but have stood the test of time.”

The two significant cryptos fell by nearly 5 per cent and 7 per cent, trading at their lowest in the past ten days. Other top altcoins by market cap are also running in red than the previous day, said Edul Patel CEO and Co-founder, Mudrex.

“The downward trend is likely to put investors in a chaotic situation. The fall of significant cryptos can be attributed to lower demand, inflation, and seasonality. The coming week would be vital for the crypto spectrum.”

Global Updates
Creating an official digital version of the US dollar could give Americans more, and speedier, payment options, but it would also present financial stability risks and privacy concerns, the US Federal Reserve said.

The paper made no policy recommendations and offered no clear signal on where the Fed stands on whether to launch a central bank digital currency (CBDC), a digital form of cash in your pocket.

Other than this, hackers have continued to exploit a vulnerability in the cross-chain bridge Multichain about three days after the weakness surfaced. They have stolen about $3 million in cryptocurrency, according to online publication

Also, Robinhood Markets Inc is rolling out crypto wallets to 1,000 users, allowing them to send and receive cryptocurrencies through their brokerage accounts, the company said.

In another news, Agoric, a startup dedicated to creating JavaScript-based smart contracts, announced on Thursday it had sold over $50 million of its native BLD tokens in under two hours using the CoinList platform.

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