Ethereum
$ 1,187.01 2.79%
Solana
$ 38.49 4.00%
Dogecoin
$ 0.072046 1.75%
ApeCoin
$ 4.86 1.78%
Bitcoin
$ 20,711.00 2.51%
BNB
$ 233.21 1.85%

Will Cryptocurrencies Fall After Russia Attacks Ukraine?

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Russia launched a Ukraine invasion by land, sea, and air. It is the biggest attack by any European state against another one since the time of World War II. The US President said that the US along with its allies will be imposing huge sanctions upon Russia after these attacks. Josep Borrell the EU foreign affairs chief promised the challenging financial sanction that the bloc ever imposed.

A dive in price took place in U.S. bonds and stocks globally. However, prices of the dollar, oil, and gold increased highly. Some European stock plunged alone 2.6 %. Bitcoin was seen to fall to its lowest on Thursday within a month after Russian forces started to fire missiles at many cities in Ukraine and began to land troops on the coasts, thus sparking riskier assets’ sell-off.

Bitcoin fell by 7.9% to its lowest $34,324 since 24th January. It last traded down 4.5%. Smaller digital coins that usually move in combination with Bitcoin fell too and Ether also lost 10.8%.

Impact on Cryptocurrencies

  • Bitcoin may act as a safe shelter from all geopolitical tensions, it frequently moves in along with different risks on the assets.
  • Its price fall on Thursday saw losses after hitting a $69,000 high record in November past 50%.
  • As the crisis of Ukraine becomes intensified, the most precious crypto of the world fell below $40,000 on the weekend and it kept on sliding.
  • Apart from geopolitical tensions, US Federal Reserve’s interest rate hike’ prospect and restrictions by a few big economies on digital currencies made it lose almost half of its value.
  • Early Thursday many cryptos too dropped badly.
  • Ethereum dropped over 12 % and for Dogecoin it was over 14 %.
  • Ethereum last traded at $2349 and Dogecoin at 10 cents.
  • Binance Coin trailed by 12.34 % and traded at $332.97.
  • Cardano fell to $0.7544 by 18.49% and Solana to $80.43 by 10.44 %
  • Shiba Inu traded at $0.00002135 by falling by 16.92.
  • Samoyedcoin traded at $0.01839 and recorded a 7.88 % fall.
  • Dogelon Mars traded at $0.0000006486 and fell by 20.52%.
  • Nolian Credits emerged as the biggest crypto gainer and recorded a 314.33 % rise. MekaMiners saw the highest loss and fell 99.51%.
  • The last crash humbled many cryptocurrency investors and they are not ready to increase their holdings because of the huge uncertainty for these risky assets.
  • Bitcoin may continue to face decent obstruction from the level of $40000 as geopolitical stress will be preventing risky digital assets from recovering a lot.

Predictions by Experts

  • According to some experts, such declines make it clear that cryptos are a bad option for investors.
  • This is because of their stability during the market unrest in contradiction to the conventional barrier against risks such as gold and the U.S treasury securities.
  • The ultimate risk digital asset is Bitcoin.
  • This Ukraine invasion will keep selling pressure of cryptocurrency to go another 10-15% more than the short-term.
  • Buying and selling are taking place hugely than normal in terms of volumes.
  • But in the case of selling, very few of them are seen to sell in bulk.
  • In stable crypto coins, the traded volumes are higher.
  • Some profitable investors already booked profits and took it in these coins.
  • People who were eager to purchase cryptos in this bargain must have their bags of stable coins filled up.
  • Owning to the cryptocurrencies’ volatile nature, RBI continuously warned all investors.
  • The view of RBI is known on this digital asset and because of this; there is a delay of a bill on it.
  • The central bank favors a total ban on speculative assets as they believe that they come with no underlying value and for financial stability, they are a big threat.

Conclusion

After the move of Russia to Ukraine, cryptocurrency globally witnessed $242 million in liquidation. It happens in the market of cryptocurrency when any trader does not have sufficient funds for funding any margin call. Cryptocurrency markets had a noisy start to 2022 as the US Federal Reserve indicated a prospective hike in the rate of interest and crypto prices may further be sliding soon. The prices of Bitcoin may hit levels of $30000 before it goes up as the US may be coming up with some cryptocurrency regulations that may dip the price again if they are not favorable. Here you should know about the legitimacy of Bitcoin as an investment.

Disclaimer. This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Cryptopolitan.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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