Bitcoin has collapsed to $42,000 as tension rise among Russia and Ukraine. This happened a week after, BTC’s first time crossed $ 45,000 in weeks. It looks like the virtual is affected by the prevailing situation on the border of Russia and Ukraine where armed forces and equipment are going to be deployed. Many other risk assets are also affected by the recent increase in the dispute.
Bitcoin appears to have been influenced by US media reports claiming that Russia can make a plan for an attack on Ukraine on Tuesday next week. US Secretary of State Antony Blinken expressed the concern that an attack could happen at any time. Keeping in view the whole prevailing situation, many countries have warned their citizens and asked them to leave Ukraine as soon as possible. The countries like the United States, Finland, Denmark, and the U.K are now urging their citizens to leave Ukraine immediately because of the risk of attack. The United States embassy has also asked its employees to leave the country as soon as they can.
The conventional financial markets are also affected in recent hours. This report shocked the whole market as Dow Jones fell 500 points, while Nasdaq witnessed a drop rate of more than 2%. It could also affect bitcoin by pushing it down on Friday. We witnessed that over the last some months, BTC and other digital currencies have become closely related to other conventional financial assets.
In the days to come, everyone needs to keep an eye on what could happen between Russia and Ukraine. It could have a huge impact not only on BTC but also other conventional financial markets from all over the world. Additionally, the world has been raising interest rates over the last few years because of the high inflation rate and relaxed monetary policy.
The Russian aggression of Ukraine is a threat to the stability of European countries and can push markets down. It is too worth noting that if the attack on Ukraine takes a form of reality, then this conflict could spread to other many countries, such as the Baltic States. Additionally, if BTC and other conventional markets fall, altcoins will follow the same tendency. Therefore, markets cannot be a haven in times of turmoil. Altcoins can fall faster in comparison to other assets, which include bitcoin. Currently, bitcoin is trading at $ 42,180 and has a market funding of $800 billion. In the previous 24 hours, the virtual currency witnessed a 3% value loss.
