Risk Aversion Pulls Crypto Market Down, Bitcoin Still Below $40K

The crypto market is still reeling as a result of risk aversion triggered by Russia’s invasion of Ukraine.

Bitcoin (BTC), fell Monday for the sixth day in a row, after falling six times in just six days. The $40,000 barrier has been broken again.

Bitcoin hit a high of $39 536 and then plummeted to an all-time low of $37 192. After finding support at $37,000, it finished the day at $38,850.

On Monday, crypto advocates were shocked to hear that the White House would issue the eagerly awaited Crypto Executive Order.

Crypto EO Comin’ Up

Sources close to the subject say that President Joe Biden of the United States is likely to sign an executive order to direct the Justice Department, Treasury and other agencies to investigate the legal and financial consequences of creating the digital currency US central bank.

A turbulent day was had by the wider cryptocurrency market.

BNB outperformed market by rising 1.51% while ADA (-3.51%) and SOL (3.41%) underperformed.

AVAX (-9.6%), ETH (+2.31%), LUNA +1.72%, and XRP (-5.56%) all fell in tandem with Bitcoin.

 Source: TradingView.com| Source: TradingView.com

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EO To Ban Crypto

Biden is expected to sign an EO restricting or banning cryptocurrencies, according to reports.

The move comes in the face of growing concern about Russian elites’ use of cryptocurrencies to avoid Western sanctions that have cut Russia off from large parts of the global economy, and moves by China and other countries to develop their cryptocurrencies.

It is possible that this could be the first step in the formation of the CBDC.

An administration official, according to a source, said that such a move would have broad support from within Biden’s inner circles.

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Following Biden’s directive, the Justice Department said it would look into whether new legislation is required to establish a new currency, with the Federal Trade Commission, the Consumer Financial Protection Bureau, and other agencies analyzing the effect on consumers.

Sources say that it is possible to continue research on the impact that cryptocurrency will have on the wider market as well as the potential environmental impacts of Bitcoin mining.

Last year, US Treasury Secretary Janet Yellen warned of an “explosion of danger” from digital markets, particularly the abuse of cryptocurrencies, but she also said that new financial technology may be useful in the battle against crime and injustice in the country.

Wozniak Supports Bitcoin

Meanwhile, Apple co-founder Steve Wozniak refers to Bitcoin as “pure-gold mathematics,” and the rationale demonstrates why crypto may be here to stay.

Wozniak indicated that he is a supporter of bitcoin but skeptical about other cryptocurrencies or non-fungible tokens.

Although he did not explain why he is interested in Bitcoin’s mathematics, he most likely appreciates that the calculations appear to help provide a technical explanation for Bitcoin’s supposed stability compared to the yellow metal.

In an interview with Bloomberg, he said that the crypto market had reached “roughly $2 trillion in round numbers.”

“It’s simply pure mathematics,” he said.

Al Bawaba featured image, Chart from TradingvView.com

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