Bloomberg quoted wealth management firm Bespoke Investment Group as saying that both bitcoin and the aggregate market have seen significant declines.
Investors are expecting the US Federal Reserve to move forward to tackle inflation. Recently it was reported that the Federal Reserve is also taking steps towards the possible launch of a US digital currency. Since then cryptocurrency prices have fallen further.
Global stock markets have also registered the biggest fall in the past one year this week.
On the other hand, digital assets saw a sharp sell-off a day after Russia’s Central Bank announced proposals to ban all cryptocurrency trading and mining. Russia is one of the largest crypto mining centers in the world. But the proposed rules say that even the country’s banks will not be able to do the work of cryptocurrency investment and exchange.
In its 36-page report, Russia’s central bank has said that the rapidly rising value of cryptocurrencies is due to speculation and only creates bubbles. The central bank’s announcement had little impact on bitcoin initially. But on Friday, the popular cryptocurrency fell to its lowest level since August after falling more than 10 per cent.
There has been a demand for a ban on cryptocurrencies in India as well. The central government is preparing to make a law related to cryptocurrencies. The bill related to this was planned to be introduced in the winter session of Parliament, but it has been postponed. Some organizations like Swadeshi Jagran Manch are opposing cryptocurrencies. He says that cryptocurrencies can increase illegal activities. The number of people trading in cryptocurrencies in India is increasing.
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