Russia-Ukraine Tension Impact on Crypto Industry

Russia-Ukraine tension continues – Bitcoin enthusiasts have long claimed the value of crypto as a haven from inflation and risks in traditional markets. However, hours after Russian President Vladimir Putin called for his troops to invade Ukraine, cryptocurrencies fell sharply. Bitcoin dropped 8% in the hours following Russia’s invasion of Ukraine; the Price increased to $34,413 per coin. Ethereum reduced 7% to $2,404. Popular among NFT creators, Solana rose to $83, up 10% overall. Even Shiba Inu, a meme coin used against 49,000,000% logic last year, sank by 10%.

The entire cryptocurrency market has reportedly lost $160 billion in value in the last 24 hours; And fell by a total of 10% after the start of the invasion of Ukraine. Of course, crypto is not the only asset that has suffered since the Russian invasion. The European benchmark Stoxx 600 index reduced 2% after opening on Thursday; While analysts predict that the S&P 500 index will decline by another 7% in the coming weeks. However, the fact that crypto is linked to other assets contradicts the identity of Bitcoin as a haven.

The correlation between crypto and stocks has been as high as inflation-related macro news in recent months; By correlation, Bitcoin behaves strongly as a risk asset. Some crypto-space industry leaders recognize the gradual integration of Bitcoin with traditional markets.

Conclusion

Crypto enthusiasts argue that the fundamental values ​​of cryptocurrency have not changed; Consequently, Thursday’s drop is an opportunity, and the current crisis also gives a chance to invest in these assets at a lower price. Of course, Bitcoin might be back, as it was a few months ago in the past. While most asset prices have fallen over the war, real gold has risen; Thus reaching a 13-month high and approaching $2,000 an ounce.