Crypto prices drop more than 10% on the Russian military attack on Ukraine. Bitcoin, Ethereum, and other crypto-assets drop almost 10% in a single day.
Crypto Prices See a Massive 10% Sell-Off
The decision by the Russian President Vladimir Putin to attack Ukraine brought a global selloff on Thursday morning. Putin warns other countries about interfering in the conflict between Russia and Ukraine.
The crypto market capitalization fell almost 7.7% in the last 24 hours to $1.66 trillion. Traders prefer to safeguard their investments during this period of calamity. The military operation by Russia on Ukraine has brought down trading volume by almost 99%. Investors put off trading in the crypto market.
Tough Sanctions Imposed by Western Countries
The US and the UK prepare tough sanctions against Russia. Russia’s self-proclamation of the People’s republics raised conflict, resulting in a war. Western countries target the finance and banking sectors of Russia. By raising sanctions on Russia, leaders hope to control the Russian attacks.
The US imposed severe sanctions on Russia’s sovereign debt. Russia will not receive financing from the west. Shipment of computers, telecom equipment, and chips to Russia will come under sanction. Russia President Putin is keen on escalating his attack on Ukraine territory.
The UK will stop Russia from selling its sovereign bonds in London. Additional legislation is yet to take place. The Rouble weakened against the US Dollar.
The EU targets banks that finance the Russian military operations. Countries across the globe are against the Russian invasion of Ukraine territory.
Cryptocurrencies Not Safe Havens during Geopolitical Tensions
Cryptocurrencies were said to be the best choice for investors during geopolitical turmoil. But the recent attack by Russia on Ukraine has caused instability in the crypto sector. Leading cryptocurrency prices have gone down almost 8% to 12%.
Safe-haven assets like gold have surged higher to $1,940 per ounce on Thursday as the war crisis worsens. Investors are moving towards US government bonds. Treasury prices are moving higher, while yields are dropping lower.
US President Biden warns about new sanctions if Russia invades Ukraine. The United Kingdom and other allies partner with the US to target Russian banks.
High inflation is already a big worry for central banks, but the current geopolitical war is causing havoc among countries. The stock and the crypto markets saw a deep slide as prices spiraled lower on Thursday, February 24, 2022.
Leading Cryptocurrencies Slump
Bitcoin slumped to a one-month low, trading at $34,357, falling almost 10%. As the geopolitical crisis worsens, cryptocurrencies are performing worse.
Bitcoin could not hold on to the $40,000 levels over the weekend as Russia marched into Ukraine. Prices at $30,000 are a strong support level for BTC. Bitcoin surged to $68,900 in November 2021 and has come down almost 50% from its life-high prices.
Ethereum fell more than 10% from the previous day, trading at $2,350 on February 24, 2022. Shibu Inu prices fell 10%. Dogecoin was trading at 10 cents, which is almost 12% lower.
Other major cryptocurrencies like Solana, Avalanche, Cardano, Stellar, XRP, Terra, and Polkadot saw a single-day price fall by almost 8% to 15%.
However, investors may consider investing in digital assets with strong fundamentals once the turmoil calms down. Earlier, the markets crashed during the Covid pandemic, when economic activities stood still. However, traders who bought on dips saw good profits.
But the Russian entry into Ukraine faces uncertainties. It is best to wait for opportunities to buy into the market.
Growth in the Crypto Asset Sector
The emergence of stable coins, crypto coins, and DeFi has brought considerable growth in the crypto industry. Exposure of crypto assets to risk management and unregulated governance makes it a risky sector.
But crypto assets are gaining popularity among institutional investors and retailers. Despite its high volatility, the crypto market capitalization climbed to more than $3 trillion. There are several new entrants to crypto-assets, similar to the traditional stock market.
The correlation of crypto assets with major stock indices is increasing. After the pandemic, the crypto market moves in tandem with the stock indices.
Investors can keep track of their crypto portfolio with the Coin Tracker. They can monitor their investments and crypto portfolio across wallets and exchanges on it.
The cryptowatch provides access to traders and users, live price charts, and crypto alerts to know about top crypto prices. You can manage your accounts on Coinbase Pro, Binance.com, Kraken, Bitstamp and Bitfinex.
Be on the lookout for the best cryptocurrency to invest in 2022. Crypto prices have crashed, and the Russian military troops in Ukraine will bring down crypto prices further until normalcy returns, as investors prefer to enter the crypto market after a major economic downturn.
Crypto Reddit members caution investors of a short-term drop in crypto prices by the Ukraine crisis. The heat should settle down before further investment, claim Reddit supporters.