Every time there is any type of geopolitical tension and uncertainty looming over countries, the stock market gets a major hit. But, this time, when the political tension between Ukraine and Russia is on the rise rapidly, not only regulated but also the unregulated market i.e. Cryptocurrency is feeling the heat.
Currently, the cryptocurrency market is seeing some swings in prices. As the conflict rises, the speculative assists have started dropping rapidly. This includes all types of assets, including cryptocurrencies as well. Some of the common tokens like bitcoin, Ethereum, Cardano, etc., are showing downward movement. This type of downward movement of the crypto value is due to a sudden feeling of panic among the investors.
The overall market dropped in value by 9% on 24th February. This happened after Vladimir Putin announced airstrikes across Ukraine and after US president Joe Biden announced sanctions.
The market slid down to $1.4 trillion. Bitcoin showed a drop of 7 percent in one day. In the beginning, the bitcoin value dropped by 9 percent; then, it showed a rise of almost 2.23 percent. Bitcoin reached the value of approximately $38,000 and again showed an ascending trend.
This is still lower than the value of bitcoin that reached in January. However, in the long run, it is not promising in terms of value, as this crypto has failed to show good positions in 2022.
Many experts and technical researchers are also saying that this type of movement is giving rise to short-term counter-trends. They also predict that the upcoming weeks will help stabilize the BTC value if there is a drastic change in the Russia Ukraine condition.
Today, Ethereum too showed a downward movement and has put the investors in serious concern. The value went down to $2,400. This is a fall from the highest of $4,850 the cryptocurrency recorded in November last year.
Many experts mentioned that with bitcoin, many investors are holding long positions with a vision stretched up to 6 months. Also, the investor is using derivatives to hedge the risks. Many are deducing that holding long positions will help, and it is better to buy bitcoin when the value goes down.
Some of the other cryptocurrency, like BNB or Binance coin, dipped by 14 percent and was valued at $361. Also, other cryptos like Cardano, polygon MATIC, Solana, etc., have shown a decrease in the value by 17 percent.
Not only the cryptocurrency market but stocks markets have shown some dips. The MOEX index fell by 33 percent in Russia, which defined the 5th worst market crash in Russian history.