This occasion has not been different and numerous analysts assure that despite the slight upturns in recent days, even without being able to take much flight, it indicates a complex moment for cryptocurrencies. But nevertheless, the US$30,000 barrier remains intact and, with it, the long-term bullish trend.
Total cryptocurrency market capitalization is now at its lowest point in six months. Since the beginning of 2022, the cryptocurrency market has fallen by around 26%. This is the third negative month in a row for the largest cryptocurrency: Bitcoin lost more than 45% from its all-time high of November 2021, with a drop of 21% in January alone. Both the cryptocurrency market and equity benchmarks tumbled from highs, since the economy was affected by some difficulties such as the announcement of the rise in interest rates in March and the crisis between Russia and Ukraine.
Investors have been nervous about digital currencies and other riskier assets ever since the US Federal Reserve signaled it may withdraw economic stimulus more aggressively than expected.
Governments are also cracking down. On Thursday, Reuters reported that Russia’s central bank has proposed a ban on cryptocurrency mining and use. Russia is one of the world’s largest cryptocurrency mining nations, but its central bank has said digital currencies may pose a threat to the country’s financial stability.
The Russian proposal comes just months after China launched a large-scale crackdown on cryptocurrencies, banning both trading and mining. Other countries are also flirting with a ban on cryptocurrencies. In November, India said it was preparing to introduce a bill that would regulate digital currencies, although much about that proposal is still unknown. Earlier this week, Indian Prime Minister Narendra Modi said that global cooperation is needed to address the issues raised by cryptocurrencies. In this context, it will be a matter of waiting.
Source: Ambito
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