[Bitcoin Now] Decline Amid Russia Cryptocurrency Sanctions News... Investor Sentiment Also Down

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices are showing a downward trend following news that cryptocurrencies will be included in economic sanctions against Russia.

According to the cryptocurrency exchange Upbit on the 4th, as of 10:20 a.m., Bitcoin was trading at 50.6 million KRW, down 2.4% (1.243 million KRW) from the previous day. The global cryptocurrency market tracking site CoinMarketCap reported a price of $41,333 (approximately 50.07 million KRW) at 10:22 a.m., down 5.74% compared to the previous day.

On the 1st, Bitcoin prices rose to the 53 million KRW range as Russians continued buying amid the collapse of the Russian ruble's value. However, prices have been declining following reports that measures including cryptocurrencies are being considered as part of sanctions against Russia. On the 2nd (local time), Christian Lindner, Germany’s Finance Minister and chair of the G7, stated, "We need to establish measures to prevent individuals and institutions targeted by sanctions against Russia from circumventing them through unregulated cryptocurrencies." U.S. Treasury Secretary Janet Yellen said, "If cryptocurrencies can be used to evade sanctions against Russia, they fall under anti-money laundering laws and thus become subject to sanctions."

The decline in Bitcoin prices has also dampened investor sentiment in cryptocurrencies. Dunamu, the operator of Upbit, reported that its Digital Asset Fear and Greed Index stood at 43.71, indicating a 'neutral' stage as of 10:52 a.m., down 5.16 points from 48.87 (neutral) the previous day. Dunamu’s index is divided into 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. A movement toward greed indicates increased buying interest, while fear signals a chain reaction of market exits leading to price declines.

Meanwhile, major domestic cryptocurrency exchanges are participating in sanctions by blocking access from Russian IP addresses. Upbit stated in a notice, "Membership registration for Russian nationals is fundamentally impossible, and there are no members of Russian nationality." It further explained, "Additionally, based on monitoring results from the abnormal transaction detection system, withdrawals may be restricted if transactions related to Russia are identified or if withdrawal requests originate from Russian IP addresses."

Bithumb also announced, "We have recently blocked access from Russian IPs in relation to sanctions against Russia," adding, "We are monitoring government sanctions and those from the U.S. and major European Union countries regarding the Russia-Ukraine situation and may implement additional necessary measures."

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