[Bitcoin Now] Decline Amid Russia Financial Sanctions Tightening... Investor Sentiment Also 'Frozen'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the conflict surrounding Ukraine intensifies with the United States and Western countries strengthening financial sanctions against Russia, the price of the leading cryptocurrency Bitcoin is showing a downward trend.

According to the cryptocurrency market tracking site CoinMarketCap, as of 10:36 AM on the 28th, the price of Bitcoin is trading at $38,224 (approximately 46.12 million KRW), down 1.49% from the previous day.

The price of Bitcoin declined as major Western countries including the United States strengthened sanctions against Russia, which invaded Ukraine. On the 27th (local time), the leaders of the Group of Seven (G7) decided that Western allies would exclude some Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment network. The G7, consisting of the United States, the United Kingdom, Germany, France, Italy, Japan, and Canada, is operating a task force to coordinate sanctions against Russia.

As part of this measure, some selected Russian banks will be fully excluded from the SWIFT payment network, and access to the Russian central bank’s international reserves will be restricted. Going forward, the task force plans to identify the assets of sanctioned institutions and individuals within the region to enhance the effectiveness of financial sanctions. Being excluded from SWIFT, which is used by over 11,000 major banks and financial institutions worldwide, effectively means Russia is being expelled from the international financial network.

Additionally, the United States is reportedly considering measures to sanction cryptocurrencies held by Russia, including Bitcoin. The Wall Street Journal (WSJ), citing U.S. government officials, reported that the Biden administration is studying ways to block Russia’s cryptocurrency transactions.

As Bitcoin prices weakened, investor sentiment also cooled. Dunamu, the operator of Upbit, reported that its Digital Asset Fear & Greed Index recorded a level of 39.05 at 10:35 AM that day, indicating a 'Fear' stage. Dunamu’s Digital Asset Fear & Greed Index is divided into stages of 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. Movement toward greed indicates increased buying interest, while movement toward fear indicates a chain reaction of market exits causing price declines.

This content was produced with the assistance of AI translation services.