May 28, 2023

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Bitcoin price drops after Putin declares war on Ukraine

Bitcoin price drops after Putin declares war on Ukraine

The price of Bitcoin fell sharply after Russian President Vladimir Putin announced on television a “special military operation” to complete the “disarmament” of Ukraine.

All signs now point to an imminent Russian invasion of Ukraine, and there is the media Explosion reports In the capital of Kiev.

While Ukrainians and citizens of the world have more pressing concerns about the price of cryptocurrency at the moment, the markets are a way to gauge anxiety, given the importance of Russia in the energy sector.

According to data from CoinMarketCap, the total cryptocurrency market cap has lost nearly 5% in the past 24 hours, bringing it to $1.6 trillion. Much of these losses came in the period immediately before and after the invasion. In less than half an hour, Bitcoin fell from $37,000 to below $35,500.

Bitcoin fell. Photo: CoinMarketCap

It’s not just the cryptocurrency markets that freak out. US stock markets continued their further corrective trend today, with the Dow Jones Industrial Average down 1.38%. Asian markets, which were open during Putin’s announcement, are also reacting; The Nikkei is down 1% and China’s Hang Seng is trading down 2%.

Economist Jason Furman, former advisor to President Barack Obama, this week He said“Russia is incredibly unimportant in the global economy except for oil and gas. It is basically a big gas station.”

With supply chains already under stress and inflation rising globally, energy shortages will only heighten concerns for businesses and consumers alike. Although Bitcoin is often promoted as a hedge against inflation and economic certainty, its introduction of traditional financing means that its price movements are increasingly correlated with stock markets.

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