Cryptocurrencies were trading low after the Russian declaration of war on Ukraine. It should be noted that not only the crypto market but even traditional financial markets were trading low. Cryptocurrencies see more volatility in their prices so they went down faster and lower than the stocks.
Bitcoin went down by almost 8% when market opened on Thursday. Similar downtrends were seen in traditional financial markets.
This downslide may be a positive thing because analysts were predicting the cryptocurrency price going up because of global disruptions. However, it is the opposite that has happened. Digital assets like bitcoin have gone down because of the latest Russia and Ukraine conflict. After this latest downturn, the cryptocurrency market value was at $1.75 trillion, according to the CoinMarketCap data.
Bitcoin was not the only one suffering losses. Other altcoins suffered bigger losses. Ethereum went down by 11% on Thursday. Other altcoins also dropped by more than 10%. These drops across all cryptocurrencies caused the crypto trading volume to increase significantly. It went up by 45% on Thursday, as reported by CoinMarketCap.
Crypto assets have a reputation problem. They are considered a shadowy and speculative alternative to the real economy. This reputation is now challenged by the crypto market as it keeps pace with the world events with its limited and predicted responses.
As crypto trading becomes mainstream and gains momentum, both financial institutions and public have started trading these assets in higher volumes. It is good for the crypto assets that their prices are now affected by the political and financial events, in the same way as it happens with the traditional assets.