Russia Ukraine Crisis Wreaks Havoc in the Already Pain Laden Crypto Market
“Russia brought more pain to the crypto investors after it escalated the military situation by recognizing two states of Ukraine as independent. As the Russian invasion into Ukraine loomed closer, the investors in the stock market as well as the crypto market are taking less risky positions increasing the selling pressure even further.”
Bitcoin, the largest cryptocurrency by market cap is exchanging hands at the time of writing at a level of $36,810 which is 6.20% fall in the last 24 Hours and the alts took a double digit hit since yesterday as the Russian President Vladimir Putin addressed the Russian Nation and escalated its crisis with Ukraine. The Crypto market has already taken a hit from the pandemic and this geopolitical crisis can make the investors fall on their faces.
Russian-backed separatists in the Donetsk and Luhansk regions – collectively known as the Donbass – broke away from Ukrainian government control in 2014 and proclaimed themselves independent “people’s republics”, until now unrecognized. But with Putin’s address, Russia recognized these areas as independent and thus paved the way for Moscow to send military forces into the separatist regions openly, using the argument that it is intervening as an ally to protect them against Ukraine.
Experts believe that if the invasion actually occurs, it can bring down all the financial markets and Bitcoin can again see the $20K range in its price and some altcoins even lower. The greed and fear index value has dramatically changed in the weekend, getting down to 20 from 45 last week. There is an extensive fear in the market now and the retail investors are running for life, increasing the selling pressure even further. The downward pressure is expected to continue until the end of march as Fed’s rate hike is around the corner as well.