Here is Why Bitcoin (BTC) Dropped From $41,551 to $39,300 in One Hour

Why Bitcoin (BTC) Dropped suddenly From $41,551 to $39,300.

Bitcoin (BTC) recorded a sudden spike today, rallying as much as 5.7% to $41,691 amid expectations of the details from the meeting of the Federal Open Market Committee (FOMC) on interest rates hike. 

Unfortunately, the BTC rally was short-lived as the popular cryptocurrency plummeted below $40,000, the price level traded yesterday. 

At the time of writing, Bitcoin is currently trading around $39,400, as many traders seemed confused as to what may have prompted the sudden drop in value for the world’s largest digital currency. 

Confiscation of Russian Investments Prompts Fear

Following developments about the endless sanctions slammed on Russia, especially on citizens who have close affiliations with president Vladimir Putin, Russians fear that their offshore assets may be confiscated. 

The belief is that the confiscation of investments belonging to president Putin’s allies could be extended to Russian residents who have offshore investments.  

In recent times, global cryptocurrency exchanges have been urged to freeze cryptocurrency accounts belonging to Russian citizens, with many citing that the country could use the nascent asset class to evade global sanctions. 

Ukraine’s deputy prime minister Mykhailo Fedorov has been at the forefront of these calls. However, crypto exchanges have turned down these requests, saying the stringent measure goes against every doctrine of cryptocurrencies, which centers on financial freedom. 

Despite exchanges not bowing to pressure, cryptocurrency investors still fear a possible seizure of their assets in foreign countries. 

Per a recent report published by famous news outlet Reuters, Russian cryptocurrency investors have started liquidating their investments in the United Arab Emirates as they continue to seek safe havens for their fortunes. 

“We have one guy – I don’t know who he is, but he came through a broker – and they’re like, ‘We want to sell 125,000 bitcoin.’ And I’m like, ‘What? That’s $6 billion, guys’. And they’re like, ‘Yeah, we’re going to send it to a company in Australia,'” a cryptocurrency executive told Reuters in an exclusive interview. 

Famous media reporter Wu blockchain says Russian billionaires are selling and buying bitcoin in large quantities in Dubai, causing the sudden BTC price movements.

Bitcoin broke through $41,000 within 1 hour, and then quickly fell close to $39,000. Earlier, Reuters reported that Russian billionaires are selling and buying bitcoin in large quantities in Dubai. Market rumors may be one reason for the strange volatility https://t.co/u7Gs4FWtao

— Wu Blockchain (@WuBlockchain) March 16, 2022

Bitcoin unexpectedly broke through $41,000, causing the liquidation amount close to $70 million in one hour.

It does not seem like Russians will be stopping anytime soon, and they may continue to seek liquidation for their foreign investments, thus affecting cryptocurrency prices.