Reports as of 1pm GMT Friday showed the entire cryptocurrency market plunged by nine percent. The collapse saw #cryptocrash become the 13th highest trend in the US as of 6:39pm, as traders bemoaned the latest volatile dip.
According to CoinDesk, a cryptocurrency newsite, Bitcoin suffered a 10.62 percent drop over the last 24 hours.
As of writing, the cryptocurrency traded at £28,350.03 after a 24 hour high of £31,837.62.
Over the last year, Bitcoin reached a record high of £50,889.69.
Other cryptocurrencies collapsed on Friday, with Ethereum, the second biggest digital coin, dropping 13.74 percent over 24 hours.
As of 6:39pm, Ethereum traded at £2,057, after a daily high of £2,393.55.
Crypto traders on Twitter bemoaned the collapse of the market, joking they will “get a real job” now.
User @TheOnePhun211 said: “Crypto more like gambling but with a fancy name.”
Another user Alok Jain noted the collapse of the crypto market is likely due to “Russian ban impact”.
Russia said it is proposing a ban due to threats to financial stability and its monetary policy sovereignty.
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Marcus Sotiriou, analyst at digital asset broker GlobalBlock, told YahooMoney Russia’s policy is a blow due to the country representing a large volume of crypto trading globally.
He said: “The news about Russia potentially banning crypto mining is significant considering Russia’s crypto trading volume last year was reportedly $5bn, and a ban will heavily impact this.
“I do not think they will be able to completely stop crypto trading activity in Russia though.
“We have seen China attempt to ban crypto trading multiple times over the past few years, yet China remains one of the most active countries for crypto – decentralised finance which is enabled by cryptocurrencies is hard to monitor/stop.”
Naeem Aslam, chief market analyst at Ava Trade, also told the outlet pessimism is to blame for downward spikes in value.
He said: “Pessimism continues to grow among investors and traders when it comes to riskier assets and this is chiefly influencing the price of equities and bitcoin.”
He stressed however he believes Bitcoin “is the currency of the future, and if one was ready to buy Bitcoin at $68K, then he or she must be excited to see a bargain like today”.
Mr Aslam added: “Smart money and other institutions are certainly going to take advantage of the current price action, and they are likely to bag some great bargain.”
Kraken Intelligence, in their Crypto-in-Review 2021 report provided to Express.co.uk, noted the asset is “widely known for throwing a few curve balls each year thanks to the asset class being highly volatile”.
They added: “However, when looking at BTC’s historical volatility, one will see that it has a rich history of approaching, if not surpassing, 100 percent annualized volatility.
“Be that as it may, it ought to be noted that volatility continues to trend down, as evidenced by the 1-year moving average, over time as BTC becomes an increasingly mature asset.
“So while we can surely expect to see some fireworks in 2022, it’s fair to argue that 2022, as a whole, most likely won’t be as volatile as prior years. But that doesn’t mean one shouldn’t brace for explosive moves in the new year.”
Merchant Cash Advance analysis, provided to Express.co.uk, also found Bitcoin was the most popular cryptocurrency in 2021, with 368,000 monthly searches.
Using a seedlist of cryptocurrencies and Semrush to analyse global search volume to ascertain the most popular form of Cryptocurrency, the analysts found the second most searched is Shiba Inu with 135k searches.