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Cryptocurrencies are falling rapidly

Another black (or rather red) day in the world of cryptocurrencies, this time for no apparent reason. Several economic indicators coincided, pointing to a possible negative development of the situation, so in the markets where the optimism is quite unstable, a big sell-off started.

Bitcoin was particularly volatile over the past day, so in just 12 hours it first saw a jump in value of about 4%, followed by a decline of almost 10%. In the end, the total drop in 24 hours was over 8% for the price of bitcoin, while the entire global cryptocurrency market “sank” by 7.5% – overnight, so it lost nearly 150 billion dollars.

Currently, the global crypto market, according to CoinMarketCap, is worth $ 1.816 trillion. At its peak in early November last year, that value was $ 3 trillion.

If we look only at bitcoin as the largest cryptocurrency, its value also peaked in November, when it reached $ 69,000. Until yesterday it was around 43 thousand, and during the last night it fell to just over 38 thousand dollars – ie a level that has not been since August 2021.

The altcoins did not fare any better either: the ether lost 12% in value, and among the biggest losers was the dojokin with a price drop of over 20%.

Hacked Crypto.com

Apart from the economic indicators and the investors’ concern about the uncertain course of the pandemic, the negative trading mood was probably influenced by the news about the hacking of the Crypto.com platform. This week, 483 customer accounts were hacked, from which the attackers tried to steal a total of 34 million dollars. The Singaporean company claims that it stopped the attack, ie that none of their customers was left without their investment.

Russia proposes ban

Almost at the same time, Russia announced that its central bank would propose to the government a complete ban on the use and mining of cryptocurrencies across the country. They cite threats to the financial stability, welfare of citizens and monetary sovereignty of the Russian Federation as reasons.

The Central Bank of the Russian Federation believes that most of the demand for cryptocurrencies is speculative in nature and that the market has the properties of a pyramid scheme. Their ban would cover not only the trading and payment of cryptocurrencies, but also the operation of exchange offices and the mining of cryptocurrencies, which they say creates problems in the supply of electricity.

“The best solution to all these problems is a complete ban,” they said.

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