Bitcoin has lost almost half its value since the November high. Cryptocurrency prices continue to fall as large economies seek to curb their growing popularity.
This situation is not just happening with Bitcoin, as cryptocurrencies have generally had a bleak start this year. Bitcoin fell over 8% two days ago. The world’s most valuable cryptocurrency has fallen by over 20% since the beginning of the year. In November it traded at a record high - $ 68,990.
Ethereum, the world’s second most valuable cryptocurrency, fell more than 12% two days ago and was trading at around $ 2,400. This marks a drop of almost 30% since the beginning of the new year.
Investors have been worried about digital currencies since the US Federal Reserve signaled it could ease economic stimulus. On Thursday last week, Reuters reported that the Central Bank of Russia has proposed banning their use as well as banning what is known as "mining" (bitcoin mining is the process of creating new bitcoins by solving extremely difficult problems. complicated mathematics that verify transactions). Russia is one of the largest cryptocurrency countries in the world, but the bank said digital currencies could pose a threat to the country's financial stability.
The Russian proposal comes just months after China launched cryptocurrency austerity measures, banning both trade and mining.
In November, India said it was preparing to introduce a bill that would regulate digital currencies, although not much is known about the proposal yet.
However, not everyone is pessimistic. Goldman Sachs - a leading global investment banking, securities and investment management company - said the price of bitcoin could reach more than $ 100,000 within the next five years.
