Anna KeyFri, Feb 25, 2022 5:45 PM
Crypto Prices Plummet Amid Russia-Ukraine Conflict
On February 24th the crisis between Russia and Ukraine reached its current peak after escalating for a few weeks. The political unrest caused volatility and instability for the crypto market. In this article, we will discuss experts’ opinions on what crypto investors could expect as the possible outcome of the current situation.
The crypto market, alongside the traditional stock markets, saw a sharp fall early on Thursday morning after Russia announced its troops were invading Ukraine. The crisis caused a $500-billion sell-off of the crypto market, due to the value of some digital currencies going below the support level. The number-one cryptocurrency Bitcoin was down by 8% in its value and reached the lowest point of $34,459 on Thursday morning.
FTX, a global crypto exchange, claims they expect the BTC price to decline, despite some experts believing BTC would be able to resist.
FTX’s CEO, Sam Bankman-Fried, posted a series of tweets explaining the reasons behind the Bitcoin price drop.
He explained that the Russian invasion created events leading to the sell-off in financial markets, including cryptocurrencies.
Plan B, a Bitcoin analysis twitter page, acknowledged that Bitcoin is still not recognized as a commodity resource, hence cannot be put on the same line as gold or oil for instance.
The next couple of days will show if the market treats BTC as a stock or a store of value.
As of Friday morning, BTC is trading at $38,332, gaining some momentum since yesterday’s drop.
European leaders announced new strict sanctions against Russia as their response to President Putin’s decision to send forces into Ukraine. USA and Canada have also implemented sanctions against Russia, aiming to put a dent in the Russian oligarchy circles and subsequently the Russian economy and banking system.