Despite the persistence of Bitcoin and other cryptocurrencies over the years, there is still a lot of skepticism about the industry. Countries and regulators still see cryptocurrencies as black-market goods that can only be used for negative actions like funding terrorism, money laundering, drug trafficking, and even war.
Amid the Russian vs Ukraine War, the European Union has taken steps to disrupt the flow of high-value cryptocurrencies into Russia. This recent action against cryptocurrencies in Europe may have had a direct bearing on the recent dip in price.
In a recent press Christine Lagarde, the president of the European Central Bank said that they have taken steps to prohibit depositing high-value cryptocurrencies in Russia. According to him, this move is part of the heavy sanctions on Russia amid the Ukraine invasion.
Christine Lagarde said that the move will close any loophole that may be exploited as Russia tries to evade sanctions with hopes that the economic pressure will force the country into doing the right thing. Before this news, there had been rumors that Russia was using the cryptocurrency industry to evade sanctions and receive funding from outside or within the country.
The report states that cryptocurrency wallets will no longer be able to receive funds in Russia. Transactions in Bitcoin, Ethereum, BNB, Cardona, XRP, Luna, and other cryptocurrencies. Keep in mind that these cryptocurrencies surged significantly just after Russia invaded Ukraine and continued in a bullish rally each time a new economic sanction was placed on the country.
In March, last month, Christine Lagarde said that the uptick in the price of these cryptocurrencies was undeniable evidence that Russia was bypassing conventional channels to evade sanctions. The latest ban is in line with his previous warning and major exchanges have already suspended their services in Russia.
The latest sanction is one of many that have been imposed on the country since the invasion started. Actions have already been taken against legacy institutions like banks, asset management firms, and trusts. Worldwide, companies have publicly denounced their support for Russia and suspended services in the region to show solidarity with Ukraine.
Shortly after the announcement was made public, the price of Bitcoin took a dip. At the time of writing, Bitcoin BTC was trading at $42,438.14. The range of the cryptocurrency within the last 24 hours was $42,183.25 and $43,490.80. The trading volume was $20,661,371,783.83 and the market capitalization was $805,737,506,408.46.
Ethereum ETH was maintaining its stance as the second-largest cryptocurrency trading at $3,220.73, down by 1.7% within a 24-hour period with a trading volume of $12,729,256,138.90 and a market capitalization of $387,818,134,302.58.
Sentimental changes in cryptocurrency prices are not uncommon when major announcements are made. Investors are optimistic that cryptocurrency prices will keep rising.