After another decline, Bitcoin (BTC/USD) is trading at barely above the $20,000 barrier. The market as a whole reacted negatively to Federal Reserve Chairman Jerome Powell’s comments on monetary policy at the Jackson Hole economic symposium on Friday, and now we’re seeing the effects of those comments in this current drop. Even though it was expected, Wall Street and cryptocurrency prices dropped when Powell confirmed at the symposium that the central bank would maintain its aggressive approach to inflation.
As markets continue to process the Fed Chair’s comments, Bitcoin is currently trading at roughly $20,250, and it remains to be seen if Bitcoin can maintain the psychological support zone. If it fails, prices could retest their levels from mid-June, causing even more suffering.
Due to monetary constraints, Russians are increasingly turning to cryptocurrency.
While the cryptocurrency market as a whole is still in a bear phase, adoption in Russia is on the rise. Anecdotal evidence suggests that more people are looking to cryptocurrency as a means of sidestepping stringent controls on international money transfers. Nearly a third of respondents to a recent survey said they planned to purchase cryptocurrency within the next six months.
Analyst at UK-based digital assets firm GlobalBlock, Marcus Sotiriou, claims that monetary restrictions enforced by Russian authorities are a major catalyst for crypto adoption in the country.
Since early 2022, when sanctions were imposed in response to Vladmir Putin’s invasion of Ukraine, the ruble has suffered. Moreover, he told Invezz in an email that the increased interest in cryptocurrency can be attributed to the tighter regulations.
It’s hard for anyone to get around the regulations while using crypto, he said, because “there is no legal means to acquire or sell cryptocurrency in Russia right now.”
While this is true for many people, platforms that provide OTC crypto exchange services are apparently making it simple to acquire crypto using fiat currency.
To obtain foreign currency, the assets are sold off in places like the United Arab Emirates (UAE) and Georgia.
Russians are increasingly using cryptocurrency as a means of circumventing sanctions, as reported by Invezz.