New Delhi: The global cryptocurrency market capitalisation saw a massive drop from $1.88 to $ 1.7 trillion during the last 24 hours. The trading volume surged from $66.35 billion to $126 billion.
Bitcoin fell below the $40,000 price level after the crypto market plunged in the wake of the Russian central bank’s proposal to ban cryptocurrencies in the country. Bitcoin’s market dominance remains the same at 40.51 percent while the coin was trading at $36,579 levels in the morning.
BTC is down by 8% trading at the price level of $35,600 at press time, as the month continues to see cryptocurrencies struggle to give any green indexes. Keeping stablecoins aside, all the biggest 100 cryptocurrencies are trading in the red with some tokens are down as much as 30 percent.
Etherium slipped below its $3,000 support level and is down by 15 percent trading at $2,478.
Why is crypto down today?
The main cause behind the massive drop is believed to be the proposal presented by the Russian Central Bank to ban cryptocurrency. The proposal states to ban all use and mining of cryptocurrencies on Russian territory.
As per reports, this move has been triggered due to the risks that hover around cryptocurrencies financial stability, the sovereignty of monetary policy as well as the financial safety of its citizens,
Russia has been resistant to the use of crypto for years citing threats of terror financing but the country had still granted cryptocurrencies legal status in 2020.
While the UK Government announced on Tuesday that they are planning to legislate to address a rise in misleading crypto-asset adverts.
The downward slide in the crypto market could be set to continue.
Wall Street sell-off, investments like cryptocurrency and equities in tech and growth stocks have seen a massive sharp sell-off. This move have sent a wider negative sentiment in the market.
