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.
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.
