Here’s what cryptocurrency experts have to say about the invasion-driven volatility of the crypto market these weeks. The Russian invasion of Ukraine last week caused even more volatility in the cryptocurrency market, experts say. The crypto market is up 5.1% on the day as investors seem to have shrugged off fears of a potential Russian-Ukrainian conflict. Several major currencies are rebounding today after the cryptocurrency market outpaced the possibility of a Russian invasion of Ukraine on Tuesday.
The cryptocurrency market plummeted following Russia’s invasion of Ukraine on Wednesday evening, although prices have recovered slightly since then. Bitcoin previously lost almost 10% of its value when Russia and Ukraine invaded Ukraine on Thursday. The ongoing war between Russia and Ukraine has led to massive selloffs in the cryptocurrency market, which has fallen nearly 10% in the last 24 hours.
The Russian military intervention in Ukraine caused a sharp reaction from the cryptocurrency community. News of the Russian military intervention in Ukraine initially led to the collapse of bitcoin (BTC) and other cryptocurrencies. Since then, the US government has responded to Russia’s military intervention in Ukraine with tough economic sanctions that have helped cryptocurrency prices recover from their initial plunge. Although the prices of cryptocurrencies fell last week, they recovered after the invasion.
Cryptocurrencies fell in tandem with equities last week when Russia initially invaded Ukraine, but they have since outperformed. While global markets have seen ups and downs since Russia invaded Ukraine last week, the price of bitcoin has risen 6% in the previous 24 hours to $44,219.50 on Tuesday. Bitcoin weathered Monday’s stock market crash, gaining 9.3% on what analysts said was increased demand from buyers in Russia and Ukraine. Bitcoin fell to a low in more than two weeks as fears of a possible Russian invasion of Ukraine prompted some analysts to predict that the larger cryptocurrency could slide to the key $30,000 level.
The crash is followed by a stock market crash triggered by US President Joe Biden’s comments that Russia could invade Ukraine in a matter of days. Bitcoin and crypto prices plummeted as tensions between Russia and Ukraine came to a head. Shares closed lower on Friday after one of the Dow’s biggest single-day drops of the year as investors sought a diplomatic solution to the Russian-Ukrainian crisis that has rocked markets for much of the week.
Cryptocurrencies rallied on Friday after a massive sell-off the previous day after Russia invaded Ukraine and markets invaded Ukraine, with about $150 billion disappearing from the market. Crypto markets are turning green again, with major coins including Bitcoin and Ethereum gaining momentum, even as the Russia-Ukraine crisis escalates with no sign of a ceasefire. The two largest cryptocurrencies by market capitalization are trading at their highest levels since mid-February, while altcoins have recovered significantly from the collapse during the Russian-Ukrainian crisis, especially networks capable of executing smart contracts such as Ground, card and avalanche. At the same time, traders said that despite its decline, Bitcoin is a more profitable asset than other major cryptocurrencies.
Stocks and cryptocurrencies returned to new all-time highs over the next 18 months. Other major cryptocurrencies also fell sharply, with Aether losing 13%, Solanas SOL 15% and Cardanos ADA 18%, the largest of the largest cryptocurrencies by market cap. Bitcoin and other major cryptocurrencies traded lower on the eve of Valentine’s Day as the global cryptocurrency market cap fell 2.2% to $2 trillion.
Bitcoin dipped below $40,000 over the weekend and continued to weaken as the Ukraine crisis deepened, undermining the argument that cryptocurrencies are a safe haven in times of geopolitical turmoil. Bitcoin rose more than 3% on Wednesday as Asian stocks rebounded on vanished fears of immediate war after the US imposed sanctions on Russia. Cryptocurrency prices fell by as much as 10% when Russian President Vladimir Putin announced a military operation in Ukraine. As the conflict continues, more and more people are turning to bitcoin (BTC) to help fund the Ukrainian military.
As the war continues, volatility in global financial markets, including cryptocurrencies, is sure to follow, experts say. Bhagaban Behera, CEO and co-founder of social cryptocurrency exchange Defy, said crises like wars often cause investment markets to crash. The cryptocurrency market is highly volatile and experts advise investors not to make decisions based on sudden price changes.
Cryptocurrencies are highly volatile assets, even more pronounced quality than usual due to intrusion. For several months, bitcoin has been correlated with other risky assets such as equities as more institutional investors are attracted and short-term investors enter the market who trade bitcoin like other risky stocks. Cryptocurrencies have long been backed by supporters as an asset unrelated to traditional financial markets, Boneparte says the cryptocurrency market is reacting to news of Russia’s invasion of Ukraine in sync with stock markets.
Russia’s attack on Ukraine hit the financial markets on Thursday, with stock and futures markets in Europe and Asia down 2% and the cryptocurrency market shed nearly 9%. The price of bitcoin has lost almost 10% in the last 24 hours to crash to $40,000, with ethereum, BNB, solana, cardano and XRP showing similar declines, wiping out nearly $200 billion from a combined $1.9 trillion market. cryptocurrencies over the past week.
Heilman added that the increase could also be due to people converting fiat to cryptocurrency to donate to the Ukrainian military and Ukrainian charities, which have raised more than $22 million in the past five days, according to the Ukraine Oval’s cryptocurrency. Cryptocurrency compliance company Radkl CEO Bea Ocarroll said bitcoin was used to transfer value during the Russia-Ukrainian crisis, including through millions of dollars in cryptocurrency donations.