Cryptocurrency prices drop as Russia-Ukraine war triggers
Cryptocurrency prices dropped as the threat of Russia invading Ukraine intensified amid border clashes. It has prompted the crypto community to unload their hazardous digital assets in order to safeguard their portfolios from additional price losses.
The bitcoin market plummeted when Russia started a "special military operation" against Ukraine. Bitcoin's price has dropped 8.12% in the last 24 hours, while Ethereum's price has dropped 13.28%.
The war between Russia and Ukraine has had an impact on the cryptocurrency market. With the global crypto market value falling to $1.57 trillion, a loss of over 9.66 % in the last 24 hours. Russia is accused of using crypto money to mitigate the impact of sanctions by avoiding checkpoints. It may also make deals with anybody working with them via digital currency anywhere in the world, according to Business Today.
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Bitcoin (BTC) was trading at $35,082.66 at 5:00 pm IST, down 8.12% in the last 24 hours on the cryptocurrency market. According to Coinmarketcap.com, it presently has 42.42 percent of the crypto market, up 0.73 percent in the last 24 hours.
Ethereum (ETH) was trading at $2,350.25, down 13.28 percent in the past 24 hours. While Binance Coin (BNB) was trading at $332.97, down 12.34 percent in the same period. Cardano (ADA) was down 18.49 percent to $0.7544, while Solana (SOL) was down 10.44 percent to $80.43.
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The recent decline comes after a week of unstable price activity in the cryptocurrency market, with bulls and bears battling it out for the majority of the week.
"The recent crypto market drop might be interpreted as a knee-jerk reaction to the escalating tension between Ukraine and Russia," BuyUcoin CEO Shivam Thakral remarked.
"A war between the world's two largest crypto centers may skyrocket the Bitcoin hash rate. And this worry is keeping the crypto market on edge." Looking at the big picture, we've lately seen some positive developments. Like the crypto-themed Super Bowl and the NYSE applying a trademark to become a financial exchange for NFT and crypto trading."
Meanwhile, dramatic price corrections in the recent two months have caused concern among Indian investors. Small investors' difficulties have been exacerbated by losses, regulatory ambiguity about crypto's legal status. High tax rate on crypto earnings declared by the government during the budget.
"They've been in the red for the last two months," said Vishal Gupta, a crypto investor and critic based in Noida. "One factor or another has been battering the bitcoin industry."
People aren't used to being in a state of uncertainty for an extended length of time. Most small investors are now stating that they will exit the market after they have recouped their capital, but crypto is addictive."
Russia-Ukraine war has impacted the traditional financial markets. The Dow dropped 232 points (0.7 percent) on Friday, while the Nasdaq dropped 168 points (1.23 percent ).
Over the last two months, a number of macroeconomic factors have had an influence on the crypto market. Earlier, Omnicorn fear rattled the market, which led to a fall. It was quickly followed by a dramatic drop in technology equities, which had an influence on cryptocurrency values. President Biden is also likely to release an executive order on cryptocurrency regulation, which will add to the confusion.
Experts predict greater losses now that Bitcoin has breached the psychologically significant $40,000 mark.
On February 20, 2021, Bitcoin was trading at $57,489; a year later, it is down 31.45%, while Ethereum is up 37.7%.
