The prices of cryptocurrencies tumbled today, Saturday, January 22, 2022, due to investor concerns regarding the Russian decision regarding those currencies.
The collapse comes in light of international pressures on cryptocurrencies, the latest of which was the Russian Central Bank’s proposal to impose a ban on the use and mining of cryptocurrencies.
Russia is one of the world’s leading bitcoin mining sites.
Bank of America believes that cryptocurrency returns will decline following regarding 18 months, in light of the strong decline and expected volatility during the current year with the end of stimulus policies and the decline in liquidity, and thus the inability of the markets to repay debts.
UBS joined the warnings and believes that cryptocurrency fluctuations make it harmful, especially for small capital, and that investors should calculate the adjusted returns behind these fluctuations. The bank advises investing in financial technology companies.
India has also banned dealing in cryptocurrencies on its soil, and Turkey’s central bank last April banned the use of cryptocurrencies and assets in the purchase of goods and services, citing potential “irreparable” damage and significant risks in those transactions.
One of the strong reasons for the collapse of the “crypto” market is also the passage of the US Infrastructure Act in November 2021, with investments of $1.2 trillion and a basic budget of $550 billion, which imposed taxes on cryptocurrencies that are intended to generate revenues for the United States of America regarding 28 $1 billion to cover only regarding 5% of the total infrastructure law costs, according to Bloomberg.
And last September, the Chinese Central Bank announced that all transfers using digital currencies will be illegal, which means that all digital currencies will be banned.
Bitcoin has also been hit in the wake of an internet outage in Kazakhstan due to an escalating wave of protests, which negatively affected the country’s fast-growing cryptocurrency mining.
Investors are awaiting the Federal Reserve’s (US Central) announcement of an increase in interest rates next week, which in turn curbs the appetite of high-risk assets and pushes to invest in US bonds, amid expectations of a strong increase in global inflation.
The market value of cryptocurrencies declined during early trading today, Saturday, by 9.17%, to reach $1.66 trillion, with a volume of trading during the last 24 hours, which recorded regarding $121.80 billion.
Cryptocurrency rates today
The price of the digital currency Bitcoin BTC plunged 7.51% to reach $35957.85.
The price of Ethereum (ETH) fell by 12.55% to $2,502.95.
The price of the Binance coin BNB collapsed by 13.77% to reach $367.07.
The price of the cardano ADA coin fell by 12.07% to record $1.08.
XRP lost 9.68% to $0.6252.
The Polkadot DOT coin lost 18.21% to $18.25.
The price of the DOGE coin (Dogecoin) decreased by 9.49% to $ 0.1379.
The price of Litecoin (LTC) fell by 12.12% to reach $ 109.46.
Chainlink LINK coin price collapsed by 14.39% to $16.52.
