The cryptocurrency market faced a significant surprise as Bitcoin fell to its lowest value of this month after the Russian attacks on Ukrainian cities. Russia fired the missile on the cities of the Pro-western country.
Bitcoin fell by as much as 7.9% to $34,324, its lowest since Jan. 24, and was last trading down 4.5%. Smaller coins that typically move in tandem with bitcoin also fell, with ether losing as much as 10.8%. The recent dip in digital assets will consider as a huge impact due to increased investment by the clients—billions of dollars invested by the users for long-term investment plans in 2021. In the last 24 hours, more than $150 billion was liquidated in the crypto market after the declaration of attack by Russian President Vladimir Putin on Media. Bitcoin is the major price indicator of all other small coins in the crypto market fell sharply bewildered the users.
“Risk assets continue to be weighed down by the Russia-Ukraine conflict and tensions. This includes Bitcoin and cryptocurrencies, which are currently still very much viewed as a high-risk asset class,” said Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno. The cryptocurrency was considered safe from the risks of geopolitical tensions, but the current scenario changes all notions.
US and the EU imposed economic sanctions on Moscow, especially in the technology sector and Finance sectors like banks. As a major exporter of power resources like natural gas, Russians will face an economic crisis. Still, the international market will also observe an increase in oil and gas prices. The oil market saw an upsurge in prices after the Putin address. Brent oil crossed the $100 per barrel, pressing down the developing countries and the pandemic situation. The current situation coupled with the Pandemic will also shock the developed nation.
Germany is importing the gas from Russia through the Nord Stream 2 gas pipeline. Moscow will put pressure on the exports of Germany as its exports are based on the energy resources of the Kremlin. Italy and Germany will be the most affected countries regarding imports and exports. Germany can switch its bloc from the US to Russia due to the risk of economic collapse.
Gold hit its highest since January 2021, while the Japanese yen piled higher against the dollar, and the Swiss franc hit a five-year high on the euro. Stock markets dwindled in their points sharply. On equity markets, Hong Kong, Sydney, Singapore, and Wellington lost at least three percent, while Seoul, Mumbai, Taipei, and Manila fell more than two percent. There were also steep losses in Tokyo, Shanghai, Jakarta, and Bangkok.
The world will overview the military, economic and cultural shifts in the upcoming days. Many countries will change their support from Russia to the US and vice versa. The risk of economic collapse will act as the central axis for countries to choose their alliance. Gold, oil, and Crypto markets will have to absorb more shocks in the upcoming days or weeks.
Source:
https://www.dawn.com/news/1676818/oil-tops-100-havens-rally-stocks-drop-as-russia-ukraine-crisis-spooks-global-markets
https://www.cnbc.com/2022/02/24/bitcoin-btc-cryptocurrencies-tumble-after-russia-attacks-ukraine.html
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