Bitcoin prices plunged on Thursday as global geopolitical concerns reached new heights. During the second round of talks amongst Russian and Ukrainian officials, no deal to cease the war was achieved. Markets became nervous in response to the standstill, driving up the cost of traditional safe-haven assets like gold and the US dollar. Meanwhile, Enerhodar, Ukraine’s largest nuclear power plant, was reported to be on fire early Friday morning after being bombarded by the Russian military, prompting concerns of a nuclear disaster. The revelation caused panic in the crypto market, with some investors selling their crypto assets and looking for other safe-haven options.
Because of the current situation, Bitcoin has already dropped 10% for the year and over 38% from its lifetime high, which was in November 2021. Prior to the Russian invasion of Ukraine, Bitcoin behaved similarly to other risky assets such as tech stocks. Because of a shift in the scenario, Bitcoin is now subject to stock market volatility in the United States. As a result, Bitcoin investors will be concerned about the present geopolitical atmosphere.
Meanwhile, Russians are exchanging their falling rubles for bitcoin in order to mitigate the impact of global economic sanctions imposed in reaction to their country’s invasion of Ukraine. Because the government limits people’s ability to perform electronic currency transactions, Ukrainians are now increasingly turning to bitcoin and other stablecoins backed by the US dollar.
In our view, the changing scenario worldwide may prove to be a game-changer for the cryptos in terms of more adoption and global laws. Do you think the same? Let’s wait and watch..!!!