bitcoin news
10
Oct

Russia’s ban on cryptocurrency exchanges causes a flash crash in Bitcoin prices

On Tuesday morning the world’s number one cryptocurrency suffered a brief slump due to a recent news on Russian Central Bank plans to ban websites selling cryptocurrencies. Early this Monday, the cryptocurrency touched a high of $4867 which was its highest since September 2 according to CoinDesk.

But suddenly it dropped by $600 to $4200 at around 9:00 AM London time. This was the same time when Russian Central bank announced the ban. Bitcoin price went down by 12% but it soon recovered much and reached to $4784 in just 10 minutes. According to Reuters, the cryptocurrency was described as “dubious” by the Russian Central Bank’s first governor on Tuesday morning. He added, “We are not able to provide direct access to such dubious instruments to our retail investors.” He was speaking at a conference in Moscow and said that the Russian government is going to block the websites of cryptocurrency exchanges such as Bitcoin exchanges in Russia.

History of Bitcoin and other cryptocurrencies’ Flash crashes

Bitcoin price dropped by $200 after the announcement of China on initial coin offerings (ICOs). The People’s Bank of China did not approve the fundraising activities supported by ICO’s. ICOs allow new companies to sell new cryptocurrencies like Bitcoin in return of cash and raise investment. Due to this ban, the Bitcoin price went down to $4350 but recovered in the following weeks.

In the month of June, the price of another competitor cryptocurrency Ethereum which reached as low as 10 cents from $319 on the GDAX exchange. This big downfall was due to a multimillion dollar sell order triggering automatic stop loss order which resulted in such lowering of prices.

But Ethereum blockchain has received some good support from big firms like Microsoft according to a CNBC report which has helped in driving coin price higher and has reached to a good level now.

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