In the early Asian hours, crypto markets witnessed almost $242 million in liquidations as markets responded to Russian soldiers marching deeper into Ukraine in what Russian President Vladimir Putin dubbed a “special military operation.”
Bitcoin, the world’s most popular cryptocurrency, plunged by more than 8% to $34,932.07.
Ethereum, the second-largest cryptocurrency by market value, fell by more than 10% to $2,376.19. XRP was down by more than 9%, while Terra was down by more than 1%.
Other prominent cryptocurrencies such as Dogecoin plummeted by more than 12%, Shiba Inu fell by more than 10%, Polkadot fell by more than 10%, and Polygon fell by more than 12%.
Why Is The Cryptocurrency Market Down?
Bitcoin and other major cryptocurrencies have plummeted following Russia’s full-scale invasion of Ukraine. In the early Asian hours, the overall market capitalization of cryptocurrencies fell by approximately 7.8 per cent.
“The global trading volume fell by nearly 191 per cent in the past 24 hours. Bitcoin, Ethereum, and other major altcoins are running in red after Russia declares war against Ukraine,” Mudrex’s CEO and Co-Founder, Edul Patel, stated.
“The situation may have a sound impact on the crypto market going down for a few weeks. Cryptocurrencies have been witnessing the effect of war tensions between Russia and Ukraine for the past few weeks causing high volatility in the market. This crucial step is not only going to impact the cryptocurrencies but also the significant equities in the financial market.”
According to reports, President Vladimir Putin stated in an early morning broadcast that the “special military operation” in Ukraine was intended to achieve “demilitarisation and denazification of Ukraine.”
With Russia’s recognition of the independence of two Ukrainian provinces, Donetsk and Luhansk, NATO and the EU launched plenty of sanctions to limit the Russian government’s financial authority. The restrictions will impact businesses, football clubs, and people.
Russia-Ukraine War: Should You Buy The Dip?
Bitcoin was trading around a two-week low as worries of a Russian invasion of Ukraine spurred some analysts to warn the largest cryptocurrency might go below the critical $30,000 mark.
But there are top investors and analysts who believe:
“The panic sell witnessed in the markets today is an expected reaction to any global crisis. The key thing to note is that the fundamentals of the crypto asset class haven’t changed. While there is a possibility of further declines, the asset class is expected to absorb large volume buys beyond another 20 per cent drop.
Taking history into perspective, when the COVID-19 pandemic hit, we witnessed one of the biggest crashes in stocks and crypto. However, both assets recovered to new all-time highs in the next 18 months. Thus, we believe, the current crisis also presents an opportunity to invest in these assets at a lower price.”
Long-term investors would likely sweep the markets shortly and acquire crypto assets with excellent fundamentals and great returns.