As the Russian invasion of Ukraine sent equity market into a spin, Bitcoin and ethereum fell by 8% and 9.7% respectively. According to Coinmarketcap, the cryptocurrency market lost $150 billion over the past 24 hours.
CNBC reported that bitcoin and Ethereum, the world’s most valuable cryptocurrencies according to market capital, have fallen on news of Russia’s military intervention in Ukraine. Bitcoin fell to $34,702.18 on Thursday. Ethereum traded at $2,372.63.
European markets fell on Wednesday after the news of the invasion. Stoxx 600 dropped by 3.6% to a new low on Wednesday. ‘Banks plunged 6.8% to lead losses, as all major bourses and sectors slid into negative territory.
Anto Paroian is Chief Operating Officer of digital asset investment fund ARK36. He stated that the principal driver of price movements in the broader risk assets spectrum over the past few weeks was the prospect of geopolitical escalation.
He said that investors have rushed to remove risk from the table now that Russia-Ukraine war is a reality and stock markets around the world are experiencing major declines.
Experts say that it is not surprising that the crypto market has been closely correlated with risk assets in the last two months. Bitcoin is dropping more than 8 percent per day.
Ruud Feltkamp is the CEO of Cryptohopper, a crypto trading bot. He said that he had been closely following the markets for some time and was curious about how the Bitcoin price would respond to it. It’s doing very well, I believe.
“Regardless of war, I expected a slight drop anyway, and after that, another $40k retest will be expected. He adds that it is still uncertain if this will happen.
“If you look at historical events and the reaction of stock markets to them, there isn’t a lot of action or response. The markets fell only 3.8% after Pearl Harbor’s attack. The run-up and associated uncertainty seem to have had a greater impact.
As the crisis continues, Bitcoin could fall to $30,000, with July lows at $28,000 and $29,000 serving as points of reference.