Bitcoin’s (BTC) price has continued to fall below US$40,000 since this past weekend, as the global crypto market has been bearish since last Friday amidst global uncertainty with Russia’s invasion of Ukraine, when it shed US$98 billion in total market volume.
Image Credit: CoinGecko
Alas, BTC’s midweek gains last week were shortlived, having fallen over 16% from last Wednesday’s high of US$45,077. This is likely due to concerns about the possible threat of crypto sanctions on the rise, such that crypto might not be so much of a safe haven for people in Ukraine and Russia moving forward.
At 1.10pm, BTC is trading at US$37,971 on March 7.
Changpeng Zhao, founder and CEO of Binance, states that virtual currencies are unlikely to be used by the Kremlin to avoid sanctions as “crypto is too small for Russia”, according to a report by The Guardian.
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Zhao said cryptocurrencies also defeated attempts to work around sanctions by being too traceable, saying that more focus should instead be placed on banks. In a statement, Zhao added that the media and politicians should be focusing on conventional lenders and the oil and gas market.
Moreover, Zhao said that the use of blockchain in cryptocurrency transactions means that crypto assets are “not an effective tool for illicit activities”, further ruling out the likelihood of crypto fuelling any possible foreboding undertakings by Russia.
Photo: Darrin Zammit Lupi/Reuters
