- Bank of Russia proposed a ban on crypto issuance, exchanges and mining as it threatens the country's financial stability.
- A former Russian President believes that a ban on Bitcoin could move activities to a "grey" area.
- Analysts predict Bitcoin could post a third month of losses with a bearish shift in momentum.
The Central Bank of the Russian Federation revealed plans to ban cryptocurrency issuance and related activities. The former President of Russia criticized the plan.
Bitcoin momentum could shift to bearish according to top indicator
Bank of Russia, the central bank of the Russian Federation, has revealed plans to ban Bitcoin, cryptocurrencies and related activities. Russian politicians and critics opposed the central bank's restrictive policy on crypto.
Dmitry Medvedev, the former Russian President, now serves as Deputy Chairman of the Security Council. Medvedev argues that a ban on Bitcoin and crypto could backfire, having the opposite of the intended effect.
The former Russian President is quoted as saying:
To be honest, when you try to ban something, this very often leads to the opposite result.
Medvedev believes that restrictions on the issuance and circulation of Bitcoin and cryptocurrencies could halt the development of blockchain technology in Russia. The Russian Association for Electronic Communications (REAC) believes a ban would complicate control as market activities move to the "grey" area.
The RAEC issued the following statement:
The ban on the circulation of cryptocurrencies will leave Russia on the sidelines of the development of one of the fastest-growing digital markets at the moment, which will significantly slow down the innovative development of the country.
The moving average convergence divergence (MACD), a momentum indicator, shows the relationship between two moving averages of a cryptocurrency. As MACD histogram dropped below zero, analysts noted that this implies a "sell signal" in Bitcoin.
The indicator suggests that momentum could turn bearish, and selling pressure on Bitcoin may increase.
FXStreet analysts have predicted that Bitcoin price could crash to $30,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.