Prices of most cryptocurrencies drop as a result of Russia’s attack on Ukraine | Reports | News

The price of Bitcoin, the world’s most popular and most invested cryptocurrency, fell below the $40,000 mark after Russian President Vladimir Putin announced the military operation in Ukraine.

Bitcoin is down 2.14% in the past seven days, reports the site CoinMarketCap, which tracks the cost of the most established digital currencies in the investment market. It was trading at $39178.52 at 4:00 PM (Ecuador time) on Friday, February 25, 2022.

The Six Keys All Those Interested in Buying Cryptocurrency Should Know: Long-Term Investing Has Risks

However, there is a 1.81% recovery in the past 24 hours, which gives hope to those who are investing in this digital asset, as it was trading at less than $35,000.

This cryptocurrency reached its maximum last November at $68,990, but has since fallen below the $40,000 mark, which is a 50% drop for the largest cryptocurrency by market cap.

Analysts argue that higher interest rates by the US Federal Reserve and restrictions imposed by some major economies on these digital assets have affected their prices.

India recently announced a 30% tax on virtual digital assets, while maintaining its reservations about it and betting instead on the digital rupee.

Added to this is the geopolitical situation this week with the Russian invasion of Ukraine.

By contrast, Japan launched its first phase of digital currency testing last year while continuing to allow cryptocurrency transactions.

Singapore, which is also considering creating its own cryptocurrency, granted five licenses to crypto services, but cautioned against its ads for being “too risky” due to their tendency to speculate, a situation similar to Spain’s.

Other cryptocurrencies also fell after Putin’s announcement.

Ethereum is down 3%, according to CoinMarketCap, in the past seven days and is trading at $2,713.14 as of 4:00 PM. This Friday, February 25.

Theter and BNB also recorded discounts. The first one has a marginal drop and the second one is trading 8% lower, as well as in the last seven days. A theter is trading at $1 and BNB at $368.8.

Many investors are “reluctant to increase their holdings due to massive uncertainty about risky assets,” Edward Moya, chief market analyst for the Americas at Oanda, said in a note to clients last Thursday. CNN in Spanish.

Moya predicted that Bitcoin will likely continue to “see proper resistance from the $40,000 level as geopolitical tensions will prevent risky assets” from rallying much.

Analysts say gold remains the safest metal to invest in under current conditions, just as it was during World War II. Back to tradition.

The drop in cryptocurrency prices amid the turmoil in Ukraine, Bloomberg reports, undermines crypto advocates’ argument that digital currencies are now the digital version of a long-haven asset.

“Bitcoin is more a driving force and a risk-driven asset than an independent store of value that people want, it just doesn’t exist anymore,” said Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report. , as reported by Bloomberg.

Gold traded as high as $1,974 on February 24, the highest level since September 2020, a year marked by the onset of the COVID-19 pandemic.

“Gold is doing exactly what it should be doing now, but it is a more mature asset with a track record of these kinds of disputes over how to trade it,” Essaye said. “This is the first time Bitcoin has faced a potentially major global struggle, and I expect the declines to continue as long as stocks are under pressure.”

In an interview with AFP, market analyst Diego Morin confirmed that if the bitcoin price reaches $33,076, which is the last minimum, it is very likely that it will drop to the $30 thousand barrier. “It is too early to tell now what will happen to cryptocurrencies with the current crisis as well Compared to the rest of the assets, where uncertainty can continue to create panic selling, but everything will depend on the performance of the operation carried out by the countries concerned, ”explained the expert. (I)