Not just crypto but financial markets as well have been in a freefall due to the Russia-Ukraine situation and inflation worries. Investors are backing away from risky assets and trying to shore up losses.
On Feb. 22, 2022, BTC prices were at $36,649 and lost 6.5% in value in a 24-hour period. This information was gathered by CoinDesk. There seems to be no end in sight for a recovery due to the Ukraine-Russia crisis. The cryptocurrency is worth just half of its all-time high of November 2021, when the price was $68,890. Other factors besides the Ukraine situation playing havoc with financial markets are the possible interest rate hike by the Federal Reserve and curbs imposed on digital asset adoption by many countries.
Not just Bitcoin, other cryptos have been doing badly as well due to the same conditions. ETH lost 8% of its value just in the last day and its current trading price stands at $2520. The issue in the Ukraine stems from the fact that there are 2 pro-Moscow separatist regions in eastern Ukraine.
Russian President Putin sent in troops to resolve the issue and also said that these have been recognized by Moscow as independent regions. This move to recognize these territories and give them legitimacy is not being received well by European countries or the US. It looks like a large-scale military operation in the Ukraine will happen and there is no end in sight. Thanks to this development, global financial markets suffered huge losses.