Risk aversion induced by Russia’s attack on Ukraine is continuing to wreak havoc on the cryptocurrency market.
Bitcoin (BTC) declined for the sixth time in less than a week on Monday. It has yet to push through the $40,000 threshold.
Bitcoin (BTC) reached a high of $39,536 after plunging to $37,192. It ended the day at roughly $38,850 after seeking assistance at $37,000. On Monday, crypto supporters were shaken by the revelation that the White House is preparing to publish the long-anticipated cryptocurrency executive order.
Per a source familiar with the situation, US President Joe Biden is going to announce an executive order this week instructing the Justice Department, Treasury, and other departments to investigate the legal and economic implications of building a virtual currency issued by the US central bank.
The cryptocurrency market as a whole had a rough going of it in the next 24 hours. Binance Coin (BNB) beat the market by 1.51%, while Cardano (ADA) and Solana (SOL) lost by 3.51 and 3.41%, respectively. Avalanche (AVAX) (-0.96%), Ethereum (ETH) (-2.31%), Terra (LUNA) (-1.72%), and Ripple (XRP) (-0.56%) have all fallen in lockstep with the biggest cryptocurrency.
Reportedly, Joe Biden will issue an executive order prohibiting or restricting the use of cryptocurrencies. The decision comes amid mounting concerns over Russian oligarchs’ utilization of cryptocurrencies to circumvent Western sanctions that already have shut Russia out from major areas of the international economy, as well as initiatives by China and other states to build their own cryptocurrency.
It is likely that this will be the first move in establishing a CBDC. Per an insider within the administration, such a measure would have widespread backing within Biden’s close group.
After Biden’s direction, the Justice Department announced that it would investigate if the proposed law is needed to build a national currency, with the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau, as well as other departments assessing the impact on users.
Per the unnamed individual, additional research will be done ahead on the significance of cryptocurrencies in the larger economy as well as the environmental consequences of Bitcoin (BTC) mining.
In 2021, Janet Yellen, the US Treasury Secretary spoke of a spread of peril from digital markets, notably from cryptocurrency exploitation, but she still suggested that modern financial technologies may be positively used to aid the country in fighting crime and corruption.
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