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Bitcoin Crashes 12% Along With Other Cryptos After Russia Invades Ukraine

The price of Bitcoin (BTC) has crashed 12% to $35,000 today along with other cryptocurrencies after Russia invaded Ukraine.

It has been reported that along with Bitcoin, Ethereum (ETH) dropped 9.48% and Ripple (XRP) dropped 9.24% today. The overall crypto market cap has dropped 8.25% to $1.58 trillion. Russian President Vladimir Putin announced on a national broadcast that his army would conduct a “special military operation” in Ukraine.

Ethereum founder Vitalik Buterin, who lived the first six years of his life in Kolomna in Russia, said:

"Very upset by Putin's decision to abandon the possibility of a peaceful solution to the dispute with Ukraine and go to war instead. This is a crime against the Ukrainian and Russian people. I want to wish everyone security, although I know that there will be no security. Glory to Ukraine."

Advisor to Atlas DEX Altcoin Sherpa said:

"Thoughts are with all of those in Ukraine tonight. We sometimes forget that there are real people living in these situations and it's not all about the market."

The report said that in a move, which seemed to catch markets by surprise, reports were flowing in of a feared three-pronged attack on Ukraine at the time of writing, with the West already promising more severe sanctions as a result. Bitcoin, already trading in line with stocks instead of acting as a safe haven, thus showed uncertainty of its own, declining over 12.2% from Wednesday's local highs to hit $34,300.

Likewise, Asian stocks were already feeling the pressure, with Hong Kong's Hang Seng index down 3.5% and the Nikkei reaching a 15-month low. As traders waited to see the full impact on European and United States stock markets, Bitcoin market participants took stock of what the geopolitical events could mean for the largest cryptocurrency.

Sam Bankman-Fried, the CEO of trading giant FTX, questioned:

"So there are arguments both ways for what should be happening to BTC right now. I'm not really sure I would have guessed it would go down based on the fundamentals. But it is down, a lot! Why? Well, let's say there are 2 types of people in the world: fundamental investors and algorithm followers. Fundamental investors look at the situation and are uncertain which direction BTC/USD should move. Algorithm followers consult the data. Historically, what's the trend?"

He added a warning that the Ukraine saga could be financial consequences even for its EU neighbors' financial robustness and that "alternatives" may have a place in their strategies. A few minutes ago, BTC/USD was attempting to make up for some of its lost ground, having so far remained above January's low of $32,800.

Moreover, in Russia, the central bank announced that it would be intervening in the currency markets after the ruble hemorrhaged value due to the latest developments. USD/RUB circled 87 Thursday, having sat at 80 the day before. MOEX Group, the firm behind the Moscow Stock Exchange, halted trading. Consumer exchange rates were considerably more volatile, with indices showing 115 rubles or more per dollar for those seeking to buy USD on the open market.

Analyst Will Clemente, the Lead Insights Analyst at Bitcoin mining company BlockWare, said:

“Thoughts and prayers are with everyone in Ukraine.

The most important thing is that the price of oil has spiked to $99.50 in response to Russia’s actions.

Thus, Anthony “Pomp” Pompliano, the podcast host and crypto investor, has pointed out that since Russia is the world’s third-largest producer of oil, the impact of this situation is going to be felt globally.

Source: Cointelegraph


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