Cryptocurrency market drops significantly

After the entry of Russian troops into the territory of Ukraine, the digital currency market showed a significant drop. The rate of the main crypto coin fell by more than 9%, reaching $35,000. The value of ETH has fallen by 12%, and Ethereum is now worth about $2,300.

In addition, over the past day, Ripple has lost 11%, Cardano — almost 15%, Solana — 7.8%.

The serious recent instability of the BTC rate against the backdrop of the Russian-Ukrainian conflict has undermined opinions of some analysts who had previously stated that digital currencies are a reliable insurance tool in difficult times.

According to the head of research and strategy at the AAX crypto platform, Ben Caselin, the fact that crypto assets movement depends on political events suggests that they continue to integrate into the existing financial system.

At the same time, price fluctuations of digital currencies are more pronounced compared to other risky assets. Today, the price of gold showed a maximum since the beginning of last year.

The representative of the Copper.co crypto platform, Jonathan Tse, believes that against the backdrop of the Russian-Ukrainian crisis, the price reduction can be significant. He does not rule out that an instant fall to the bottom may occur instead of a protracted cryptocurrency winter.

According to Luno Vice President of Corporate Development Vijay Iyar, the total cost of BTC could reach $28,000-$29,000. If this level is passed, then bitcoin may be slightly more expensive than $20,000.

“I admit that out of fear for their assets, many Russians will now prefer to transfer assets from rubles not so much to US dollars as to bitcoins, because in this way they are less exposed to the risks of possible blocking and freezing. I expect capital flight from Russian banks, many will prefer to withdraw money from deposits. But do not store them just at home under the mattress. Some will flow into cash dollars, some into cryptocurrencies,” Roman Nekrasov, co-founder of the blockchain company ENCRY Foundation, predicted earlier.

What do you think about it?

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store