Crypto Crash amid conflict between Russia and Ukraine

The world's largest cryptocurrency Bitcoin fell over 6% today as global markets took into account the impact of the rising conflict between Russia and Ukraine. The price of Bitcoin slipped 6.47% to $36,760 on Coinmarketcap. The market cap of the cryptocurrency fell to $694.882 billion. Currently, the global crypto market cap stands at $1,65 trillion, a decline of 7.76%.

Crypto fall amid Russia Ukraine conflict

Bitcoin is an unwilling participant in the volatility that is hitting all risky assets from Russia-Ukraine tensions,” Edward Moya, an analyst at broker OANDA, wrote as the leading crypto plunged below $40,000 in recent days. “Bitcoin’s rollercoaster ride won’t end anytime soon, but it could get ugly if Wall Street sees a major selloff if investors begin to expect a prolonged military conflict.”

The United States on February 22 said it will impose sanctions on Moscow, following an initially cautious response to President Vladimir Putin's order for Russian troops to deploy in two Kremlin-backed separatist areas of Ukraine. Meanwhile, Russia’s confused crypto policy also added to the slump. The country's finance ministry on February 21 said it would take proposals on cryptocurrencies from the country's central bank into account so long as they do not contradict its own approach, paving the way for legislation governing digital assets. The Bank of Russia has proposed banning cryptocurrency trading and mining due to the threat digital currencies pose to financial stability. On the other hand, the finance ministry prefers legislation to bring in the regulation of cryptocurrencies, enabling them as an investment tool, but not as a means of payment.

Surprisingly, Ukraine legalized cryptocurrencies on Thursday even as its tensions with Russia have havoced global markets in the past week due to global concerns over the r war-like situation, with more and more Russian troops nearing the Ukrainian borders.

Other cryptocurrencies were also trading in the red today. Ethereum crashed 8.05% to $2523 and Dogecoin slipped 10.14% to $0.1259. Digital token Stellar declined 12.10% to $0.175 and Litecoin fell 10.74% to $101.68. XRP slipped 14.25% to $0.6847 and Uniswap crashed 13.54% to $8.40. The fall in cryptocurrencies is in line with the crash in global markets.

World shares were trading lower as investors watched for developments in the Russia-Ukraine crisis.

Potential investors looking to buy the dip should understand that fluctuations are par for the course, and be prepared for this kind of volatility going forward. Even if you invest now, with prices relatively low, be prepared for them to fall even more if the war-like scenario continues.

Again, only put in what you’re comfortable with losing. Experts recommend keeping your cryptocurrency investments under 5% of your portfolio.