The price of the “Bitcoin” currency witnessed a sharp decline after Russia’s proposal to ban digital currencies, as it recorded in trading today, Friday, less than 40 thousand dollars, the lowest price reached by “Bitcoin” since last August.
Bitcoin, the world’s largest cryptocurrency by market capitalization, is down 6.27%, trading at around $38,800 as of midnight Friday.
The drop came after the Russian Central Bank on Thursday proposed a ban on the use and mining of cryptocurrencies.
Russia is one of the world’s leading bitcoin mining sites. Edward Moya, chief market analyst at Oanda, had earlier predicted that Bitcoin would fall below $40,000 due to the Russian proposal.
Bitcoin prices are down 16% in January, and have fallen by 36% over the past three months.
Earlier, the world’s central banks warned against the use of digital currencies, and last September the Chinese Central Bank announced that all transfers using digital currencies would be illegal, which means that all digital currencies are banned.
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