Bitcoin continues to fall and breaks below $40,000

Bitcoin continues to fall. Indeed, the price of BTC has just passed below the 40,000 dollar mark. This downward trend was mainly caused by statements by the Russian central bank against cryptocurrencies. In addition, the decline of several stock indices such as the Nasdaq also favored this devaluation of the queen of cryptocurrencies and other digital assets such as Ethereum.

bitcoin falling value
Credits: Unsplash

This Thursday, January 20 was to mark a lull in the fall in the price of Bitcoin. After collapsing around $42,000 in early January 2022, the value of BTC has slowly but surely started to climb back towards $43,000. This threshold, around 40,000 dollars, was held for two weeks.

Corn the decline of several American stock market indices such as the Nasdaq overcame this resistance. Indeed, this index with a strong technological composition lost 1.3%, dragging with it the decline of the shares of flagship companies in the sector such as Apple (-1.03%), Alphabet (-1.58%) or Nvidia (-3 .66%). On their side, BTC thus fell to $38,242 while Ethereum was a hair’s breadth from breaking below $2800.

Also Read: Bitcoin Price Will Hit $100,000, Here’s Why

The Russian Central Bank takes a stand against Bitcoin

Only, the poor results of these stock market indices are not the only ones responsible for the fall of Bitcoin. Indeed, statements from the Russian Central Bank also played a central role in this collapse. In a report published this Thursday, January 20, 2022, the institution calls for a ban on “the use and mining of cryptocurrencies on Russian territory, citing threats to financial stability, the well-being of citizens and the sovereignty of its monetary policy”.

An amazing announcement froma country that hosts nearly 10% of global mining activities. In it, the Russian Central Bank calls for similar measures to be taken in the countries of the Eurasian Economic Union. This Union, whose existence was sealed by the signing of a treaty in May 2014, notably includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.

As a reminder, Kazakhstan accounts for 18% of total Bitcoin network power. It is the 3rd country with the most hashrate in the world, just behind the United States. After the anti-cryptocurrency measures decreed in China, many miners decided to relocate their activities to this Eurasian country.

Source: BFM

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