Crypto Markets Drop By $150 Billion In Value Since The Russian Invasion

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The Invasion of Ukraine began on February 24th, bitcoin has dropped significantly and is now trading at around $35,774

The Invasion of Ukraine began on February 24th, causing a global economic crisis no less in the cryptocurrency market. Bitcoin is currently trading at around $35,774, falling to lows we haven’t seen since last summer. 

The market has suffered across the board, with altcoins recording even bigger losses than the pioneering bitcoin. It surprised many to see bitcoin fall to $40,000 in the middle of the week. But, with various global issues broadly affecting markets, some investors are pushing the panic button.

What Has Happened To Bitcoin?

Bitcoin has experienced a major stock sell-off, which was sparked yesterday by a rough day on Wall Street, as the blue-chip Dow Jones Industrial Average lost over 1,000 points. Nasdaq also suffered, falling 5%. 

The losses are the worst the market has seen in a single day since 2020. The war in Ukraine has had a significant effect on the stock market, which is closely tied to the movement of the crypto market. 

For an asset that was worth over 1.2 trillion back in November, to see Bitcoin plummet to below $700 shows there’s still a long way to go. However, given the current climate, it’s understandable to see losses.

There is hope that over time the crypto market will act independently, with Michael Novogratz, CEO of Galaxy Digital stating “That correlation will over time break down, you’ve already seen the beta the breakdown, i.e. [if] the Nasdaq falls 3% crypto doesn’t fall 9% like it would have last year,” in an interview with CNBC. 

An Opportunity In The Market

The markets haven’t just affected bitcoin prices, but many altcoins, the likes of Polkadot, Terra, and Avalanche, have also suffered greatly in the last few days. While markets sink, there are many taking advantage of the low entry price.

The Luna Foundation Guard has taken advantage of the low price, acquiring close to $1.5 billion in Bitcoin in order to accumulate reserves for the Terra stablecoin. In fact, the investment company has said its goal is to amass some $10 billion in Bitcoin by the third quarter of 2022. 

In the coming weeks, it can be expected to see similar moves from other major industry players. For now, the focus will be on the price of bitcoin and whether it will drop as low as some predict, to $30,000. 

Author

Mark Weaden

Mark Weaden is a British researcher and crypto enthusiast, living in Barcelona. His work has been published on a variety of leading cryptocurrency sites.