Cryptocurrencies dropped on Thursday as a result of Russia’s invasion of Ukraine. As per Coin Metrics, Bitcoin was down more than 5% at $35,696 at 10:00 a.m. ET on Thursday. Earlier this morning, the cryptocurrency fell more than 8% to $34,702.18, its lowest point in much more than a month. Ether dropped more than 7% to $2,439 per coin.
As per Coinmarketcap data, the whole bitcoin market has lost more than $160 billion in the last 24 hours.
Cryptocurrency prices are falling as global equities markets fall in the aftermath of Russia’s military invasion of Ukraine. According to NBC News, explosions were reportedly heard in Kyiv, Ukraine’s capital.
The cost of cryptocurrencies is frequently associated with the price of other riskier assets, such as equities. The Russia-Ukraine crisis and tensions continue to put pressure on risk assets. This encompasses Bitcoin and other cryptocurrencies, which are already considered a high-risk asset class, according to Vijay Ayyar, vice president of business development and international at cryptocurrency exchange Luno.
As the Situation Continues to Get More Tensed, BTC Will be Adversely Affected
Sanctions have been imposed on Russian banks, persons, and the country’s sovereign debt by the United States and the United Kingdom. On Thursday, the European Union will have an extraordinary summit, at which more penalties against Russia are expected to take place.
Since bitcoin achieved a record high of roughly $69,000 in early November, cryptocurrencies have been under pressure. Bitcoin has lost over half of its value since then.
If bitcoin can stay above that level, it might reach new highs later this year, according to Ayyar. However, if the price falls below that, he believes bitcoin will plummet to the low $20,000 range.
Last Monday, Huobi’s CEO warned CNBC that a new Bitcoin bull market would not arrive until late 2024.