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What do we fear the most has arrived?
Bitcoin fell 8% on Thursday, as risky assets were widely sold off on fresh fears of a Russian invasion of Ukraine.
“Bitcoin is the ultimate risk asset, and a Ukraine invasion would add another 10–15% to short-term crypto selling pressure,” Edward Moya, senior market analyst at Oanda, said in a report on Thursday.
Investors are also seeking hints about how aggressively the Federal Reserve will tighten monetary policy, with some investors already pricing in six rate hikes this year, even though the minutes from the January meeting, released on Wednesday, provided no new information.
“While the outlook for bitcoin remains mainly positive,” Moya added, “if long-term growth prospects begin to worsen further because of aggressive Fed tightening, institutional investors may modify their bets.”
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Although Russia has deployed more than 100,000 troops near the Ukrainian border, some investors are pointing to the relative calm of trade during this time of increased geopolitical tension.
Even though Bitcoin has lost 3.35 % of its value in the last 30 days according to the BuyBitcoinWorldwide’s volatility index, it hasn’t given up all its gains since its bottom of $32,950 two weeks ago.
With a loss of 2.14 %, Ethereum (ETH), the second-most popular cryptocurrency, is now trading at $2,873.
*Photo credit to source
$200 billion is lost in a single day by the cryptocurrency industry. Rumored bans on Bitcoin in Russia have caused additional turbulence in the cryptocurrency market. It is possible that Russia might be swayed by the growing distrust in the cryptocurrency business. Russia is a major hub for Bitcoin transactions because of its mining capacity, which accounts for about 10% of the global total. According to most Bitcoin experts, cryptocurrencies and the future of the economy are inseparable.
As a consequence of various occurrences, the value of Bitcoin, Ethereum, and Cardano has plummeted significantly. Investors’ selloffs were further exacerbated by a decline in the global market.
Will Russia-Ukraine tensions and their impact on cryptocurrency likely continue to worsen?!
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