New collapse for Bitcoin (BTC), the most capitalized cryptocurrency, whose valuation dropped from $ 68,000 in November to $ 34,000 yesterday. In the last week alone, it left 17.81% on the field and is trailing other cryptocurrencies: Ethereum, for example, has gone from 4,100 euros in November to 2,100 today .
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Bitcoin annual trend Over the past seven days Solana (SOL) is down by 30.5%, BNB is down by 23.9%, Xrp (XRP) and Terra (LUNA) are both down by 21.2% in the last seven days. Better goes ADAwhich recorded the lowest number of percentage losses this week: 12.4%
An immense figure that left the cryptocurrency market. Coinmarketcup has calculated a total loss of over $ 205 billion in 24 hours on Friday 21 January alone.
Some analysts agree that the worst has not yet come , yet the same analysts in November had predicted that Bitcoin would reach the price of 100 thousand dollars by 2022. The reason for these movements is, as always, in the mysteries of financial games and speculative but there are still some concomitances to analyze.
Bitcoin, given its decentralized nature, since it is linked to the blockchain that determines its existence, and disconnected from centralized powers, such as the Central Banks and this independence is not always well accepted. On the one hand, there are countries without their own currency and dependent on other international currencies, such as El Salvador , which welcome the independence of cryptocurrencies to the point of making them legal tender. Others like the USA and Russia that don’t like this peculiarity too much.
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Elvira Nabiullina, Governor of the Russian Central Bank Bank of Russia
The Russian Central Bank has always had an uncompromising stance against cryptocurrencies. Thursday issued a reportconsultation, published by the regulatory authority, entitled “Cryptocurrency: Trends, Risks, Measures”. In this report, the bank acknowledges the rapid growth of the market and takes note of the fact that every year in Russia there are cryptographic transactions carried out by Russian citizens for 5 billion dollars. But he sees all of this as a threat to the country’s financial stability , it is therefore proposed to work alongside the Russian government to enact laws that prohibit the issuance , exchange and mining .same as cryptocurrencies. Mining, that is the software process through which bitcoins are extracted, is highly energy-intensive and after the Chinese repression of the sector, Russia, with its low-cost energy, has become a mining hotspot. Many households with access to state -subsidized electricity use mining as a supplementary source of income, straining the national electricity grid. Energy consumption
Not only Russia is dealing with the energy problem linked to such an energy-intensive activity. The Republic of Kosovo has banned the cryptocurrency mining activities of the so-called “miners”. The consumption of their servers didcollapse of the electricity grids , plunging the country into a situation of severe energy crisis. Rising energy prices put the fragile economies of the Balkans on the ropes , whose industries are almost totally dependent on coal-fired power plants.
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Jerome Powell, chairman of the American Federal Reserve Federal Reserve
chairman Jerome Powell presented a report on the hypothesis of the creation of a digital currency issued by the government , also on Thursday. The government report exposes the pros and cons of government-issued cryptocurrencies, but ultimately did not take a stand on the matter. Notably, the report included a request for more input from the public and other stakeholders before taking further action. The Fed acknowledged in the report that the creation of a government-issued digital currency “would represent a very significant innovation in American money.” The Fed is asking Americans to provide public comment on the possible launch of a digital dollar until May 20, 2022 . A central bank digital currency (CBDC) would essentially be a digital form of cash, issued and backed by the US central bank.
A potential US central bank digital currency, if one were created, would best meet US needs by being privacy protected, brokered, widely transferable and identity verified
from Federal Reserve report
