Bitcoin tumbled on Friday to a five-month low during a broader sell-off across markets after the tech-heavy Nasdaq Composite fell into correction territory.
Cryptocurrencies slid across the board amid rekindled fears of heated inflation and aggressive Federal Reserve policy tightening.
The price of bitcoin dropped about 4.6% during Asian trading and 7.4% during the past 24 hours, taking the world’s largest cryptocurrency to its lowest level since August. It stood at $39,047 at 10:30am GMT.
Other major cryptos also fell, with ethereum down 9%.
The sharp sell-off came a day after the Russian central bank announced draft proposals that would ban all cryptocurrency trading and mining in one of the world’s largest crypto hubs.
The proposed regulations would ban all crypto issuance and operations, block cryptocurrency investment by banks and forbid any exchange of cryptocurrency for traditional currencies in Russia.
“The status of the Russian rouble, which is not a reserve currency, makes it impossible to apply a soft approach in Russia and ignore the growth of risks,” the Bank of Russia said in a public consultation report.
“In order to reduce the threats caused by the proliferation of cryptocurrencies”, the central bank proposed introducing a number of changes to the legislation.
- George Russell