Bitcoin Holds Steady As US Extends Sanctions Against Russia To Cryptocurrency Mining
April 21 2022 - 4:30PM
NEWSBTC
Sanctions are being imposed on cryptocurrency mining companies for
the first time in history. The US Treasury Department announced
that it is taking action against virtual currency mining companies
across Russia. This information came out when IMF issued a
statement saying, “the Kremlin may employ these activities to avoid
compliance with international economic punishment.” In the wake of
recent sanctions, cryptocurrencies have been barely affected.
Bitcoin consolidated its gains while ‘altcoins’ also performed in
green. Related Reading | Crypto Quick Look: BTC Touches $42,000,
ETH Notches10-Day Peak For example, Bitcoin is holding at $41,500 –
$42,000. On Wednesday, it managed to reach a high since April 11th,
above $42,000. But selling pressure rejected the bulls’ advance and
failed to confirm the overcoming of this important resistance
level. This is crucial for the virtual token par excellence to
regain $45,000. Naeem Aslam, head of analysis at AvaTrade, warns
that “traders know that Bitcoin has to stay above this critical
price level for the’ bulls’ to succeed.” The shortest-term support
is now back to $40,000. However, the expert warned that we should
be careful. The IMF is in the spotlight because it says that some
countries are using cryptocurrencies to avoid sanctions. Countries
like Russia and Iran use cryptocurrency to sell their oil and gas.
However, there is also concern that they might be utilizing these
resources for cryptocurrency mining, which provides another source
of revenue and bypasses any sanctions against them. “The IMF’s
warning will certainly bring more regulatory attention to crypto
companies, crypto exchanges, and crypto mining,” Aslam
commented. U.S. Treasury Designates Facilitators of Russian
Sanctions Evasion OFAC, the United States Office of Foreign Assets
Control, sanctioned Bitriver AG, a Swiss-based holding company for
cryptocurrency mining operations with offices in Russia and ten
subsidiaries. This is the first time the U.S. Treasury has
sanctioned cryptocurrency miners. Bitriver is amid a token pre-sale
called BTR. To curb Russia’s influence on cryptocurrency
mining and trade worldwide, the U.S. has imposed new sanctions
against BitRiver. The company operates vast server farms that sell
virtual currency mining capacity internationally. In addition, this
company helps monetize Russian natural resources. The U.S. Treasury
press release says that Russia has the advantage of energy
resources and a cold climate for cryptocurrency mining. However,
mining companies rely on imported computer equipment and fiat
payments, making them vulnerable to sanctions. The United States
aims to make sure that no asset, no matter how complex, the Putin
regime can use to reduce the impact of sanctions.” Bitcoin And
Altcoins Rising Despite The Risks Despite these risks, the market
positively responds and leaves rises for Bitcoin and altcoins. This
has brought the total capitalization of cryptocurrencies to $1.92
trillion. Related Reading | TA: Bitcoin Technicals Suggest Bulls
Aim Sharp Move Above $42K Ethereum’s price is currently trading
between $3,000 and resistance at $3,200. The cryptocurrency has
followed Bitcoin’s behavior and seeks to gain momentum toward
overcoming the $42,000 resistance. Terra is one of the most
promising tokens on today’s gainer’s list, up 6%, along with Solana
and Polkadot. Featured image from Pixabay, chart from
Tradingview.com
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