Crypto’s fell in value as the threat of Russia invading Ukraine grew amid border skirmishes. Investors sold their risky digital assets to protect their portfolios from more price drops.
He said that Vladimir Putin had decided to invade Ukraine and that a military strike could happen in just a few days.
On Saturday and Sunday, there were reports of shelling and multiple explosions in the city of Donetsk, in eastern Ukraine. This added to the fear in the crypto market. This is how it looked: Bitcoin was trading on Coinbase for $38,265 at 5pm India time. It was down 4% in the last 24 hours and 9.6% in the last seven days.
ETH was down 3.6%, Binance Coin was down 4.2%, Avalanche (AVAX) was down 4.25%, Terra was down 3.31%, and Cardano was down 3.85%. Investors worry about the war clouds in Europe, so other altcoins also lost ground. A lot of the metaverse tokens, like Decentraland and The Sand Box, went down in value.
Shiba Inu, a meme coin, lost more than 7%, and Dogecoin lost 2.3%. Coinbase says the market lost 4.18 percent in the last 24 hours.
Crypto Tension Between Ukraine and Russia
Coins have been rising in value for a few weeks now. The Ukraine-Russia crisis has slowed down the rise in value.
When Bitcoin hit $45,855 a few weeks ago, it had been at a low of $32,327 on January 24. Before January 24, when it hit $32,327. On January 24, the price of Ethereum was $2159. This figure was $3,284. It was this way on February 10.
Last week, the crypto market had a lot of price changes. The last dip was the end of that rough week for prices. Bulls and bears tried to fight all week.
Shivam Thakral, the CEO of BuyUcoin, said that it is a quick response to the rising tension between Ukraine and Russia, he said. War between the two biggest crypto hubs in the world could make the Bitcoin hash rate go up a lot, which would make it faster. A lot of people are afraid that the crypto market will crash because of this. In the big picture, we have seen some good things happen recently, like the crypto-themed Super Bowl and the New York Stock Exchange registering to become an NFT (non-fungible token) and crypto exchange.
After Effect on Financial Market
There have been a lot of Indian investors who have been worried about sharp price changes in the last two months. A high tax rate on crypto gains announced in this year’s budget has made things even worse for small investors.
People in Noida who are interested in digital currencies say that in the last two months they have lost money. It has been hit by a lot of things. People aren’t used to uncertainty lasting for a long time. Most small investors now say that once they get their money back, they’re going to get out of the market. But then crypto is addictive.
The conflict between Russia and Ukraine has also affected the traditional financial markets, like stock markets and bond markets.
On Friday, the Dow lost 232 points (0.7 percent) and the Nasdaq lost 168 points (0.4 percent) (1.23 percent).
A number of macroeconomic events affected the crypto market over the last two months: First, the Omicron scare caused a crash, then the US Federal Reserve said it was going to cut back on its balance sheet. This scared the market. A big drop in technology stocks followed it, which had an effect on crypto prices. There is also a lot of uncertainty about what President Biden is going to do about cryptocurrencies.
A lot of experts say that Bitcoin could lose even more money now that it has broken through the important psychological barrier of $40,000
On February 20, 2021, Bitcoin was trading at $57,489, and a year later, it is down 31.45 percent. Ethereum is up 37.7 percent, but Bitcoin is down 31.45 percent.
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