Today in Crypto: Crypto Market Cap Drops 9% to $1.5T as Russia Attacks Ukraine
Russia’s invasion of Ukraine sent the market capitalization of major cryptocurrencies plummeting before they regained most of their lost value as the invasion passed the 24-hour mark.Bitcoin traded at $38,998 at 9 a.m. ET on Feb. 23 on the Coinbase exchange. Bitcoin hit its lowest recent level, $34,322, in the early minutes of Feb. 24 as the scope of Russia’s military action became clear. Bitcoin had rebounded to $38,821 as of 11:30 p.m. on Feb. 24.Over the same timeframe: Etherium traded at $2,740 at 8:30 a.m. ET on Feb. 23 on the Coinbase exchange. Bitcoin hit its lowest current level, $2,30, at 12:30 a.m. on Friday (Feb. 25). Etherium had rebounded to $2,628 as of 11:30 p.m. on Feb. 24.Coindesk reported that the market capitalization for all cryptocurrencies lost as much as $1.5 trillion, or half its value, during the first 24 hours after the invasion before recovering somewhat. “The aggravation of tension around Ukraine exerted pressure on risky assets,” Alex Kuptsikevich, a financial analyst at FxPro, reportedly told CoinDesk. “There are growing risks of escalation associated with the introduction of Russian troops into Donbass. In such a situation, risky assets may continue to decline further.”Like counterparts worldwide, European lawmakers are worried about the power consumed by crypto miners, Coindesk reported Thursday. Still, unlike their peers everywhere but China, the Europeans are seriously considering doing something about it. The crypto website reported that a package of proposed regulations called Markets in Crypto Assets, or MiCA, would bar some use of proof-of-work mechanisms to maintain cryptocurrencies. China took such as measure in 2021, and much of the work shifted to Europe and the United States.Some European lawmakers have called for banning cryptocurrencies outright due to their energy demands.In other news, the Russian Federation is considering requiring that cryptocurrency users conduct transactions through exchanges and certified wallets rather than peer-to-peer, Coindesk reported.Coindesk based its report on a bill proposed by Russia’s Ministry of Finance.Coindesk said the document, called “On the Digital Currency” in English, was not formally distributed to the public but was shared with the crypto website by a “legal expert.”Coindesk further reported: “The Ministry of Finance earlier this week said it introduced the bill regulating crypto trading and mining despite the objections of the Bank of Russia, which insists on a full ban on cryptocurrency trading, mining and ownership.”The bill also would require that businesses dealing in cryptocurrencies maintain records similar to those maintained by traditional businesses. The measure would ban offshore companies from serving as crypto-middlemen and ban felons from chairing digital currency organizations, Coindesk reported. That exclusion, according to Coindesk, would encompass many people subjected to laws invoked to persecute political opponents of Russia’s regime.Finally, cryptocurrency purchases from the required registered exchanges would have to be made with funds coming directly from Russian banks.
