Bitcoin has found itself once again in the sights of a country eager to legislate it away, at least for the foreseeable future. Could this news affect the Bitcoin price prediction?
Alexey Moiseev, the deputy finance minister of Russia, commented on the issue. Moiseev said that he expects pending legislation on cryptocurrencies will involve a ban on payments made by digital currency. (Source: “Russia Likely to Ban Bitcoin Payments, Deputy Finance Minister Says,” CoinDesk, September 28, 2017.)
He went on to say:
“The discussions will continue. I think that within the framework of these discussions we will decide what we will do with it.
In any case, there is a market. It is developing rapidly, and there are certain advantages that could be used. I mean the advantages associated with attracting investments for projects through the ICO. I have a positive attitude to this, but there is another point of view. In order to make a decision, consensus will be necessary.”
Russia is the second major market in September to consider limiting the level of cryptocurrency activity within its borders. China sent BTC prices tumbling downward by about 20% when it first announced that it would block initial coin offerings (ICOs) earlier in September.
While Russia may not have the sway that China wields, the news will still be harmful to the Bitcoin price forecast. Just today, we’ve seen BTC inching back towards $4,000 due to the news, while a short day ago BTC was flying high and sitting at almost $4,250.
The minister said that the ban would most likely appear in legislation in October, but there have been delays in the Russian system in the past.
All things considered, while Bitcoin is still in a fairly strong position, this type of Bitcoin news is something that BTC prices do not need.
The sky is not falling for Bitcoin. It weathered the China ICO block, it can weather a potential banning by Russian officials. Bitcoin is nothing if not resilient.
But the question is how much of a deleterious effect the Russian ban will have on BTC prices.
In my mind, nothing will compare to the China ICO block, at least in the near future. Seeing as how that came and went, and BTC weathered that storm, there’s little chance that Russia will have any lasting or severely damaging impact on the Bitcoin price forecast long-term.
I believe that we’ll see a healthy BTC price of around $4,500 by year’s end, and possibly $5,000 should this news blow over.
As I always say, this type of Bitcoin news is absolutely critical to trading BTC because it can have a huge sway over the trajectory of Bitcoin for weeks. I think there will be a drop for the next few days, but ultimately, this news will rank below China and BTC will resume its upward climb.