As Tensions between Russia and Ukraine Rise, Crypto Markets Fall

Russia’s threats to invade Ukraine caused a significant dip in the crypto markets as investors offload risky assets to protect their portfolios from further price drops. Last Friday, US President Joe Biden reported that Vladimir Putin has decided to invade Ukraine and that a military strike is imminent.

Yesterday, Bitcoin traded at around $38,265, which marks a 4% drop from the previous 24 hours and a 9.6% drop in the last seven days. Simultaneously, other alt-coins fell as investor sentiments worsened. Ethereum was down 3.6%, Binance Coin fell 4.2%, Avalanche dropped 4.25%, Terra fell 3.31% and Cardano was down 3.85%. Furthermore, the metaverse tokens of Decentraland and The Sandbox fell 5.7% and 5.3%, respectively.

According to Coinbase, the global crypto market dropped over 4.1% over 24 hours.

“The current dip in the crypto market can be seen as a knee-jerk reaction to the growing tension between Ukraine and Russia,” said BuyUcoin CEO Shivam Thakral. “If there was a war between the two biggest crypto hubs in the world, it could shoot up the Bitcoin hash rate, and this fear is keeping the crypto market on its toes. If we look at the overall picture, we have seen some promising developments recently, like the crypto-focused Super Bowl and NYSE filing a trademark to become a financial exchange for NFT (non-fungible token) and crypto trading.”

Source: Economic Times India