The cryptocurrency market fell sharply on Friday as Wednesday’s gains faded amid swiftly growing tensions between Russia and Ukraine. Since Russian President Vladimir Putin stated on television that his army will conduct a “special military operation” intended at “demilitarising and denazifying” Ukraine, markets have been shaken.
Ukraine’s military invasion started on 24 February, when missile explosions were reported in the capital, Kyiv, and other towns, including Kharkiv, Dnipro, and Mariupol. These tensions seem to have spooked investors, creating uncertainty in the markets.
According to CoinMarketCap statistics, the benchmark cryptocurrency is now trading at $38,839.50, a decrease of 6.44 percent over the previous 24 hours. Ethereum, the second-largest cryptocurrency in the business, is down 5.85 percent on the day to a current price of $2,643.
In recent years, the discussion over whether bitcoin is eroding gold’s market position as a store of wealth has intensified. With bitcoin taking a beating during the Ukraine crisis, investors are beginning to doubt its safe-haven credentials.
Gold, on the other hand, soared approximately 2% to its highest level in almost a year as investors flocked to the precious metal.
Gold is gaining momentum as investors reposition themselves ahead of another uncertain weekend, with all eyes on Russia’s growing aggressiveness on Ukraine.
Gold increased by more than $35 on Friday as Russian soldiers in Ukraine overran Europe’s biggest nuclear power plant in a horrifying assault.
Numerous other cryptocurrencies, including Terra (LUNA), Solana (SOL), Polkadot (DOT), and Shiba Inu (SHIB), also suffered significant losses, as the combined cryptocurrency market value fell 9.61 percent to $1.7 trillion.
Neither traditional nor emerging markets have fared much better. In overnight trade, the Dow Jones Industrial Average and the Standard & Poor’s 500 both fell 1.9 percent. The MOEX, a significant stock index that monitors Russia’s 50 largest and most liquid businesses, has also fallen 20% from yesterday’s close.
Ukraine is one of the nations in the world with the highest rates of bitcoin adoption. The eastern European country’s route to cryptocurrency legalisation has been in the works for some time.
The US and other of its allies have thrown its backing for Ukraine and are all slamming Russia with broad-ranging sanctions in an attempt to alleviate tensions as worries continue that Russia could turn to Crypto to circumvent sanctions.
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