Bitcoin’s Price Nosedives After Putin Started Invasion On Ukraine

Time Stamp: February 24, 2022 7:15 AM
Source Node: 1185373

Bitcoin’s price nosedives today after Putin started an invasion on Ukraine after announcing that it will conduct special military operations in the region so let’s read more in today’s latest Bitcoin news.

Bitcoin’s price nosedives sharply after Russian president Vladimir Putin went on TV and announced a special military operation to reportedly demilitarize Ukraine. All signs point to an imminent Russian invasion of Ukraine and there are some reports of explosions happening in the capital Kyiv. While Ukrainians and other citizens have more pressing concerns than the price of Bitcoin right now, the markets are in a high state of anxiety given the Russian importance to the energy sector.

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BTCUSD. Source TradingView

According to the data from coinmarketcap, the total market cap lost about 5% in the past 24 hours and brought the value to $1.6 trillion. Most of the losses came in an immediate run-up and aftermath of the invasion so, in less than 30 minutes, BTC dropped from its level of $37,000 to below $35,000. It is not just the crypto markets that are spooked because the US stock markets continued into correction today with the Dow Jones Industrial Average dropping 1.38%. The Asian markets that were open during Putin’s announcement reacted as well, Nikkei got down by 1% and China’s Hang Seng Index is trading by 2% lower.

The economist Jason Furman who was an advisor to President Barack Obama said that Russia is very unimportant in the global economy except for oil and gas making it a big gas station. With supply chains stretched thin and inflation increasing, an energy shortage will add more worries to businesses and consumers alike. BTC is often seen as the hedge against inflation and economic certainties so its introduction to traditional finance means that the price movements are correlated to stock markets.

Ukraine’s Crypto Legalization, legislation, bill, law,

As recently reported, Ukraine is considered among the countries with the highest levels of crypto adoption and it recently passed new legislation to legalize crypto last week. The amendments to the Virtual Assets bill were introduced in September but will see the National Commission on Securities and Stock Market become the main regulator for digital assets. The markets are seeing more gloom in the upcoming days with the EU being set to impose heavy sanctions against Russia and the recognizing of the separatist regions in Ukraine and further deployment of troops on Ukraine territory. Ethereum’s co-founder Vitalik Buterin also said that Russia’s invasion of Ukraine won’t harm the two countries but the entire humanity.

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