Cryptocurrencies as high-risk assets have suffered after disturbing news from Ukraine. Most investors did not expect the worst-case scenario to materialize, which accelerated the sale of 'risky assets'.
Bitcoin is behaving calmer compared to other cryptocurrencies, the downward movement reached around 6%. Ethereum is doing better among altcoins, although the drops reach nearly 9%;
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Open account Try demo Download mobile app Download mobile appThe biggest drops are recorded by projects such as Dogecoin, Litecoin or Polkadot, which are already losing nearly 12%.
Ethereum creator Vitalik Buterin has recently mentioned that cryptocurrencies are beginning to behave in a way that is correlated with the traditional market. This did not happen in the past because the market was much narrower and the participation of many institutions was marginal.
Despite positive forecasts about blockchain technology from large banks such as Wells Fargo or technology giants such as Intel, cryptocurrencies are not immune to the global crisis situations we are dealing with at the moment. At the moment, it is hard to find direct catalysts that could lead to a resumption of the upward trend. For the moment, investors' attention will clearly be focused on the military conflict in Europe.
Sentiment could improve if peace or ceasefire talks were launched. The highlight of this week may be Thursday's G7 summit, where world leaders will take steps to ease the crisis in the East.
Bitcoin prices plunged after Russia began its invasion of Ukraine. The largest cryptocurrency has dropped close to 6% and is heading towards major support at $ 33,000. BTC lost over 50% compared to its historic peaks. Source: xStation5
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