A new blow to the crypto market, or how the Bank of Russia's ban will affect cryptocurrency rates
The current situation in global financial markets cannot be described as calm; news is constantly emerging that creates new trends.
Therefore, despite the approaching New Year holidays, prices for various assets are rapidly falling and then rushing upward again.
The New Year rally has not bypassed the cryptocurrency market; Bitcoin, which not long ago was selling at $60,000 per coin, is now trading below $50,000.
But it's entirely possible that the cryptocurrency hasn't yet reached its bottom; further news from Russia could resume the downward trend.
The rationale for the need for such a ban is that investment activity in cryptocurrency markets carries increased risk due to the excessively high volatility of virtual assets.
As always, the government is concerned about the safety of its citizens, but in reality, the purpose of such a ban is most likely a desire to redirect capital from cryptocurrencies to Russian investment assets.
How the ban could affect the Bitcoin price
Following the release of news about restrictions on cryptocurrency transactions in the Russian Federation, access to global crypto exchanges will likely also be blocked:
Such a move would lead to a sharp drop in the price of Bitcoin and most cryptocurrencies, with the predicted drop potentially reaching up to 10 percent of its value.
But we must not forget that cryptocurrencies have long ceased to be used solely as an investment; they are now a fully-fledged means of payment.
Therefore, the price drop will be temporary, as it did when the Chinese government adopted a similar decree in the fall of 2021. But after some time, the price resumed its growth and Bitcoin reached a new high.
Furthermore, it shouldn't be assumed that the ban will actually limit Russian investors' access to crypto markets; using VPN servers can easily overcome the problem of crypto exchange blocking.
It will also remain possible to trade cryptocurrency through international brokers - https://time-forex.com/kriptovaluty/brokery-kriptovalut
Therefore, we wait for the news, and after Bitcoin falls, we open long buy trades. As the exchange rate history shows, it is at such moments that you can earn up to 50% profit.
