A new blow to the crypto market or how the ban of the Bank of Russia will affect the cryptocurrency exchange rate
This moment cannot be called calm in the global financial markets; news is constantly appearing that creates new trends.
Therefore, despite the approach of the New Year holidays, prices for various assets are either rapidly declining or rising again.
The New Year's rally did not bypass the cryptocurrency market; not so long ago, Bitcoin, which was sold at a price of $60,000 per coin, is now trading below $50,000.
But it is quite possible that the cryptocurrency has not yet reached its bottom; another news from Russia could resume the downward trend.
Motivating the need for such a ban is that investment activity in cryptocurrency markets has an increased risk due to the excessively high volatility of virtual assets.
As always, the state is concerned about the safety of its citizens, but in fact, the purpose of such a ban is most likely the desire to redirect capital from cryptocurrencies to Russian investment assets.
How a ban could affect the Bitcoin rate
After the release of news about restrictions on transactions with cryptocurrencies in the Russian Federation, access to global crypto exchanges will most likely be blocked:
Such a step will lead to a sharp drop in the value of Bitcoin and most of the cryptocurrencies; the predicted drop could be up to 10 percent of the value.
But we should not forget that cryptocurrencies have long ceased to be used only as an investment object; now they are a full-fledged means of payment.
Therefore, the price drop will be temporary, as it happened when the Chinese government adopted a similar resolution in the fall of 2021. But after some time, the price resumed its growth again and Bitcoin reached a new high.
In addition, one should not think that the introduction of a ban will really limit the access of Russian investors to crypto markets; the use of VPN servers helps to easily cope with the problem of blocking crypto exchanges.
It will also be possible to trade cryptocurrency through international brokers - https://time-forex.com/kriptovaluty/brokery-kriptovalut
Therefore, we wait for news, and after Bitcoin falls, we open long buy transactions; as the history of the exchange rate shows, it is at such moments that you can earn up to 50% profit.