The price of Bitcoin is declining under the pressure of geopolitical and regulatory factors. The possibility of a Russian military invasion of Ukraine remains. Now the US intelligence is calling a new date, February 20. Western fears about Russian aggression against neighboring Ukraine have grown. Bitcoin continues to get cheaper. Since February 15, Bitcoin has fallen in price by almost 5%. Now the price of Bitcoin has dropped below $42500.
Regulatory concerns have been added to concerns about a military invasion. Russia is considering the possibility of banning Bitcoins at the legislative level. The Central Bank of Russia is preparing a ban on the mining and trading of Bitcoins. Since Russia has 10% of the world’s mining power, the Bitcoin ban will lead to a new bearish correction.
However, not only Russia is preparing to ban Bitcoin. This week, several countries started talking about strengthening control over the cryptocurrency market. Together, these factors have caused a sharp outflow of capital from digital currencies. Investors fear that industry regulation will be tight.
A recent report from the Financial Stability Board (FSB) states that threats come from all kinds of digital assets, including stablecoins. No one controls operations with cryptocurrencies, which increases the risks of the criminal use of such tools.
On the chart, we see an increase in the decline in the price of Bitcoin. Within two days, the value of Bitcoin lost 5% however compared to the beginning of February, the value of Bitcoin is still showing growth.
Today the BTC/USD pair is down the support level of 43000 and has fallen well below the 100 hourly moving average. The BTC/USD pair is currently struggling to stay above the support level of 42400. A break below this level will send the pair to the area of 41800. A move below this level will trigger descending towards the area of 41400.
If the pair manages to hold above the level of 42400, we will see consolidation and movement within the range of 42400-43000.
