DUBAI: Bitcoin, the leading cryptocurrency internationally, traded lower on Sunday, falling 0.23% to $21,197.99 as of 8 a.m. Riyadh time.
Ethereum, the second most traded cryptocurrency, was priced at $1,583.38, down 3.90%, according to data from Coindesk.
Bitcoin Drops to Three-Week Low After Sudden Crypto Drop
Several crypto assets fell sharply on Friday, with Bitcoin hitting a three-week low following a sudden selloff, with analysts divided over the reasons for the decline, Reuters reported.
As GlobalBlock analyst Marcus Sotiriou noted in a research note, the selloff was not triggered by a single catalyst.
He said, “But the rejection and failure of the S&P 500 to continue its recovery contributed to Bitcoin’s fall.” By early Friday afternoon, the S&P 500 was down about 1%.
According to Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, the move is the result of a large sell-off transaction.
“It doesn’t show the pattern of a flash crash, as assets didn’t immediately rebound sharply but fell even lower in the hours that followed,” she said.
Cardano seemed to be the first cryptocurrency to move, followed by bitcoin and ether, then other altcoins like Dogecoin.
Despite Federal Reserve rate hikes and ultra-high inflation, cryptocurrency prices have fallen this year.
Bitcoin’s inability to recoup its losses, according to Craig Erlam, senior market analyst at Oanda, “suggests there is merit behind this decision.” It was the worst day since the June collapse after Friday’s move.
“Speculating in cryptocurrencies is extremely risky and not suitable for the vast majority of people,” Streeter said.
Japanese SBI withdraws from Russian crypto mining industry
According to Bitcoin.com, Japan’s largest online brokerage, SBI Holdings, is shutting down its cryptocurrency mining operations in the Russian Federation.
The financial company is considering selling its equipment and withdrawing due to growing uncertainty over the future of these investments caused by the ongoing conflict in Ukraine.
Cheap energy and a suitable climate made Russia an attractive destination for cryptocurrency miners when China clamped down in May 2021, according to Bitcoin.com.
Bitcoin mining, among other Russian industries, has been affected by sanctions imposed following Moscow’s attack on Ukraine this year.
A representative from SBI, the largest online brokerage in Japan, told Bloomberg that the Russian-Ukrainian conflict has created uncertainty around mining activity in the energy-rich region, while the crypto market slowdown has made minting digital currencies less profitable.
Hideyuki Katsuchi, the company’s chief financial officer, announced his intention to sell his equipment in Russia and withdraw from the country.
In the second quarter, SBI recorded a pre-tax loss of $72 million on its crypto business due to negative developments that resulted in a loss of more than $15.8 million, a first in a decade for the group. SBI entered the digital asset space earlier than other Japanese financial companies.
With contributions from Reuters