Geopolitical tensions have stirred global markets and affected cryptocurrencies. In early morning trading on February 22, bitcoin fell to $36,370, its lowest level in more than two weeks.

Cryptocurrencies Are Getting Cheaper

Later, the world’s largest cryptocurrency partially recovered the loss and reached $37,495.

Also Read – How America’s Richest People Avoid Paying Taxes
Also Read – Insurance Companies Near Me For Health, Life And Auto Insurance
Also Read – How to Make an Appointment with the IRS and What to Do Before It

How geopolitics affects crypto

Other digital assets also fell, with Ether down 4% and XRP down 10%. The reason is the escalation of the Russian-Ukrainian crisis. On Monday, Russia recognized the “Donetsk and Luhansk People’s Republics.” Russian President Vladimir Putin ordered the deployment of troops to two breakaway regions in eastern Ukraine.

The move fueled fears of a full-blown invasion, sending global equities plummeting and traders’ risk appetite waning.

“Bitcoin and cryptocurrencies in general have been out of step with Asian stocks as headlines from Russia and Ukraine pushed up prices. First a selloff when Putin announced he was sending troops to Ukraine, then a sell-off when Putin announced he was sending troops to Ukraine. The bounce came back as the market digested the headlines,” said Chris Dick, trader at London-based B2C2 market maker.

Why bitcoin won’t protect investors

Proponents of bitcoin often refer to it as a safe-haven asset similar to gold, that is, an asset that will hold money in times of uncertainty.

But the case for bitcoin as a kind of “digital gold” has collapsed. It is being traded by more and more institutional investors, and cryptocurrencies are becoming more and more closely tied to the volatility of traditional markets such as stocks.

Du Jun, co-founder of crypto exchange Huobi, believes that the next bitcoin bull market is unlikely to come before 2024, when the next “halving” should occur.

Also Read – How America’s Richest People Avoid Paying Taxes
Also Read – Insurance Companies Near Me For Health, Life And Auto Insurance
Also Read – How to Make an Appointment with the IRS and What to Do Before It

One thought on “Cryptocurrencies Are Getting Cheaper Due to Rising Tensions Between Russia and Ukraine”

Leave a Reply

%d bloggers like this: