Cryptocurrencies fall due to Ukraine-Russia tensions

The price of bitcoin and other cryptocurrencies fell this Tuesday as a consequence of the increase in tensions between Ukraine and Russia

Bitcoin (BTC) and other cryptocurrencies registered a drop in their prices this Tuesday, February 22, due to the increase in tensions between Ukraine and Russia, that caused uncertainty in the stock markets.

Some analysts consider that the “increased tensions between these two countries caused the fall of cryptocurrencies” and the loss of interest of investors due to the risks that the current geopolitical problem means.

Chris Dick, quant trader at London-based crypto market creator B2C2, explained “Bitcoin and cryptocurrencies in general moved in lockstep with Asian stock indices overnight” on Tuesday.

According to Dick, a sell-off first occurred when the Russian president “announced that he would order troops into the Ukraine,” then a “recovery occurred as the market processed the headlines.”

The fluctuations in crypto market

Cryptocurrencies are characterized by their uncertainty and in recent weeks different fluctuations have been recorded. The most important virtual currency, Bitcoin, plummeted to its lowest level in the last two weeks, reaching as low as 36,370 dollars, while Ethereum (ETH) and XRP registered falls of 4 % and 10 %, respectively.

In the morning hours, Bitcoin was trading above $37,000, with losses of around 1.8 %, while Ether reached $2,600, accumulating a drop of approximately 1.6 %.

As will be remembered, Bitcoin achieved a record price in November 2021 when it exceeded 68,000 dollars, but then it collapsed and although there are mixed opinions regarding the recovery of its historical level, Du Jun, co-founder of the Huobi crypto exchange, considers that there are few probabilities for “the cryptocurrency to recover those levels soon, he believes that this would be in 2024 or later.”

M. Rodríguez


You might also like