Bitcoin holds steady as the US expands sanctions against Russia to include cryptocurrency mining

For the first time in history, crypto-mining companies have been penalized. The US Treasury has announced that it is taking action against virtual currency miners in Russia. This information came when the International Monetary Fund issued a statement saying: “The Kremlin can use these assets to avoid compliance with international economic sanctions.”

In the wake of the latest sanctions, cryptocurrencies have not been affected. Bitcoin consolidated its gains, while “altcoins” were performing in the green. For example, Bitcoin is stuck at $41,500 – $42,000. On Wednesday, it managed to reach its highest level since April 11, above $42,000. However, selling pressure held back the bulls’ advance and failed to confirm the breach of this important resistance level. This is critical for the ideal default token to redeem $45,000. Naim Aslam, Head of Analysis at AvaTrade, warns that “traders know that Bitcoin must stay above this critical price level for the bulls to succeed.” Short term support is now back at $40,000.

Bitcoin price

Bitcoin trades above $42,000, up 1.75% | Source: BTC/USD chart from Tradingview.com

However, the expert cautioned that we must be careful. The International Monetary Fund is in the spotlight because it says some countries are using cryptocurrencies to avoid sanctions. Countries like Russia and Iran use cryptocurrencies to sell their oil and gas. However, there are also concerns that they may use these resources to mine cryptocurrency, providing another source of income and bypassing any penalties against them.

Aslam commented, “The warning from the IMF will certainly bring greater regulatory attention to crypto companies, cryptocurrency exchanges, and crypto mining.”

US Treasury appoints facilitators to evade Russian sanctions

The US Office of Foreign Assets Control has sanctioned Bitriver AG, a Swiss-based holding company for crypto-mining operations with offices in Russia and ten subsidiaries. This is the first time that the US Treasury has imposed sanctions on cryptocurrency miners. Bitriver is in the midst of a token presale called BTR.

To limit Russia’s influence on cryptocurrency mining and global trade, the United States has imposed new sanctions on BitRiver. The company operates large server farms that sell virtual currency mining capabilities internationally. In addition, this company helps in the investment of Russian natural resources.

The US Treasury press release says that Russia has the advantage of energy resources and a cold climate for crypto-mining. However, mining companies rely on imported computer equipment and mandatory payments, leaving them vulnerable to penalties. The United States aims to ensure that there are no assets, no matter how complex, that the Putin regime can use to limit the impact of sanctions.”

Bitcoin and Altcoin on the Rise Despite Risks

Despite these risks, the market is responding positively and leaving Bitcoin and altcoins on the rise. This brings the total cryptocurrency capitalization to $1.92 trillion. Ethereum price is currently trading between $3000 and the $3200 resistance. The cryptocurrency has followed the behavior of Bitcoin and is seeking to gain momentum towards breaking the $42,000 resistance.

Terra is one of the most promising coins on the gainers list today, up 6%, along with Solana and Polkadot.

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