After Russia invaded Ukraine, cryptocurrency prices crashed

On Thursday, bitcoin fell to its lowest level in a month after Russian forces fired missiles at numerous Ukrainian cities and landed troops on the country’s coast, spurring a sell-off of riskier assets. Bitcoin dropped as much as 7.9% to $34,324, its lowest level since January 24, and was down 4.5 percent at the time of writing. Smaller coins that usually move in lockstep with bitcoin plummeted as well, with ether shedding as much as 10.8% of its value.

Russia launched an all-out land, air, and sea invasion of Ukraine, the worst attack by one country against another in Europe since World War II and confirmation of the West’s greatest fears.

Russia will serious Sanctions

Following the strikes, the US and its partners will slap “serious sanctions” on Russia, according to US President Joe Biden. Josep Borrell, the EU’s foreign affairs leader, has announced the bloc’s strongest financial measures to yet. As investors hurried for perceived safe-haven assets, global stocks and US government rates plummeted, while the currency, gold, and oil prices soared. European stocks fell by 2.6 percent on their own.

“So far, we’ve seen what we expected: BTC and crypto markets following stocks,” Joseph Edwards, head of financial strategy at crypto business Solrise Group, stated. “In a crisis, everything tends to correlate, and we’re anticipating something similar here, so things are going to get worse in the following days.”

While proponents of bitcoin claim it works as a safe haven from geopolitical concerns, it frequently moves in lockstep with other risky assets. Its drop on Thursday pushed its losses since hitting a high of $69,000 in November above 50%. 

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