In recent weeks, there have been fears of a new war among investors around the world. Last night, several media reported that Russia actually started a war.
“The Russian-Ukrainian crisis now affects all risk markets, not just bitcoin. The mixture of good and bad news makes it difficult to evaluate and trade in the market. Until this changes, it will be difficult to see any reasons for trading BTC in both long and short positions,” said Nicolas Cowley, a strategist at the DailyFX portal.
He admits that until the conflict is resolved, the first cryptocurrency will continue to drift sideways with a slight downward bias. Another analyst Simon Peters believes that if tensions continue, the market will continue to incur losses.
“Geopolitical tensions led to a spiral fall in cryptocurrencies last week. This, in particular, prevented the nascent recovery of Bitcoin and Ethereum prices,” he says.
Negative reaction to the event
Both traditional exchanges and the crypto market reacted very negatively to Russia’s attack on Ukraine. Almost all stock prices fell due to investor fears. For example, the S&P 500, Dow Jones and Nasdaq fell by more than 2%. AEX and the German and French stock markets also fell by more than 4%.
Nevertheless, the cryptocurrency market is still badly affected. Bitcoin A Ethereum prices have fallen by 8% and 11% over the past 24 hours, respectively. Other large altacins lost at least 10% in the top ten. As a result, the crypto market lost more than $400 billion in 1 day.
Cryptocurrency has been liquidated in the amount of more than $492 million
Crypto derivatives traders, especially those with long positions in bitcoins, do not stand aside. According to data from the Coin Glass Over the past 24 hours, cryptocurrencies worth about $492 million have been dissolved. The biggest dissolution occurred on BitMEX. In total, bitcoin levels worth more than $157 million were dissolved, and then $138 million on Ethereum.
The new development of relations between Russia and Ukraine is very bad news for cryptocurrency and the world market. Rumors about the war cause fear among investors, which is unhealthy for any market. Therefore, as the crisis between Russia and Ukraine worsens, cryptocurrencies are likely to take an even greater step.
Meanwhile, the current situation favors gold as a refuge. This is due to the fact that people begin to think about what can best protect their capital in the event of an aggravation of the crisis. The title “Best Safe Haven” was widely discussed among supporters of gold and bitcoins. Bitcoin supporters always point to the difference in price and growth.
