The cryptocurrency market suffered another “chaotic” 24-hour period, with $200 billion cleared from the market overnight.

The cryptocurrency market suffered another brutal day, losing over $200 billion in value in the past 24 hours, with major coins facing the worst of the crash.

Bitcoin and Ethereum, the world’s two most traded digital assets, entered another free fall on Wednesday, with smaller coins BNB, Solana, Cardano and XRP also suffering significant losses.

The price of Bitcoin has fallen nearly 10% in the past 24 hours, falling below $54,000 (AUD) for the first time in over six months.

The price of Ethereum, BNB, Solana, Cardano, and XRP also saw significant declines of 7-11% in the past 24 hours.

Still in its infancy, the cryptocurrency market has faced similar tumultuous times where large chunks of value disappear overnight.

Experts in the field believe that values ​​have fallen following the US Federal Reserve’s rate hike in 2022, alongside increased pressure from China and Russia to stifle digital currency trading domestically. of their borders.

The Chinese government’s blanket crypto ban in 2021 saw the country kick out those who use high-powered computers to mine new coins. The result sent bitcoin and crypto prices soaring, with the downward trend continuing steadily through the first weeks of 2022.

“I think the main reason for this is that the market is spooked by the Federal Reserve rate hike this year, but when the stock market sees some relief, I expect strong upward pressure for bitcoin. and the broader market,” analyst at UK-based GlobalBlock broker Marcus Sotiriou wrote this year.

The wild nature of the crypto sphere has attracted millions of new investors over the past 12 months. A brief period in early 2022 saw Bitcoin break new ground, reaching over A$80,000 per coin after Elon Musk’s persistent endorsement of the groundbreaking technology.

Mudrex CEO and co-founder Edul Patel said the current dive-bomb, which he says stems from a lack of demand amid runaway inflation in the West, has left casual investors in a state of panic.

“The downtrend risks putting investors in a chaotic situation. The fall of major cryptos can be attributed to lower demand, inflation, and seasonality. The coming week would be vital for the crypto spectrum,” he told the Economic period.

In Russia, life is about to get a whole lot tougher for those deep into the crypto sphere, with the government taking serious action against what has become a $7 billion annual market in the country of 143 million.

According to a report by the country’s central bank on Thursday local time, cryptocurrency mining and trading goes against Russia’s green agenda and can be used to launder money or finance terrorism.

Cryptocurrency has a lot in common with a pyramid scheme, according to the bank, which also called on violators of crypto rules to face the full penalty of the law.

Although the bank’s suggestion to clamp down on cryptocurrency is just that — a suggestion — Russia appears to be speeding up parliamentary sessions so that a possible ban can go into effect as soon as possible.

Speaker of the lower house of parliament, Vyacheslav Volodin, revealed this week that politicians are creating a cryptocurrency regulatory framework that will be ready in time for the spring session of the Russian parliament.

According to the proposal, cryptocurrency could not be created, mined or traded on Russian soil, including preventing customers from using crypto exchanges.

Russians with offshore accounts could still trade cryptocurrencies.

If Russia’s proposal goes ahead, it would be a blow to the cryptocurrency market worldwide.

Russian citizens make up the third largest number of crypto miners, behind the United States and Kazakhstan.

Blockchain miners have made the most of Russia’s unique resources to maximize their mining, with people flocking to the north of the country and Siberia to mine blockchain because electricity is cheap there.

“The potential financial stability risks associated with cryptocurrencies are much higher for emerging markets, including Russia,” the central bank said.

But according to the research team of CoinCDX, India’s largest crypto trading platform, digital assets have suffered years of similar suppression from global governments, sending decentralized currencies on the rise again. in the future.

“As Russia, one of the biggest crypto adopters in the world, announced its intention to ban crypto altogether, the digital asset market plunged back into the reds. BTC and ETH fell sharply, respectively falling by 2.54% and 3.62% in the last 24 hours,” CoinCDX said in a declaration.

“Other altcoins from BNB, ADA, and SOL also plunged with another economic powerhouse taking a tough stance against the crypto.

“While this may be cause for concern, the crypto industry has withstood multiple bans, restrictions, and regulatory controls over the years, but has stood the test of time.

“Looking back at how the sector rebounded shortly after China’s crypto ban, we can expect the selloff to have little long-term impact on crypto performance beyond that. brief initial dip.”