Explained: Why Bitcoin, Ether, and other cryptos crashed Friday

cnbctv18.com:

Bitcoin dropped below the psychologically important support level of $40,000 Friday, slumping over 10 percent in what was a massive sell-off in the entire cryptocurrency market. The slump continues to deepen as the world’s biggest cryptocurrency saw a decline in value by $5,000, a decrease of 8 percent over the past day.Bitcoin is currently trading at $35,700, even when trading activity has picked up significantly, indicating a mass sell-off in progress.

The coin is down over 40 percent from its all-time high of $69,000.Outside of stablecoins, all of the world’s biggest 100 cryptocurrency tokens are currently trading in the red, with some coins down as much as 30 percent. Ether, the second-biggest cryptocurrency, slipped below its $3,000 support level.

It is down 15 percent in the last 24 hours, dropping to $2,400.Binance Coin, the fourth largest coin, has slumped over 17 percent and Cardano is down over 15 percent. Dogecoin has declined over 13 percent while both Solana and Polkadot have crashed 20 percent.Meanwhile, as per data from coinmarketcap.com, the cryptocurrency market cap has declined by over 12 percent in the last 24 hours.Also Read | Cryptocurrencies tumble in trade, wipe out $150 billion marketcap in 24 hoursWhat triggered the crash?The main cause behind the latest rout is believed to be the proposal by the Russian Central Bank to ban cryptocurrency.

The Central Bank of Russia yesterday stated it was proposing to the government that all use and mining of cryptocurrencies on Russian territory be banned.This move would be taken due to the risks that cryptocurrency poses to financial stability, the sovereignty of monetary policy as well as the financial safety of its citizens, said the bank. The legal status