Crypto crashes in Russia-Ukraine war threats have excited speculative questions among many.
How might looming war declarations affect cryptocurrencies in the long term? What are the implications for newbie investors? Will this be the beginning of the end?
Indeed, fear has gripped many crypto traders as Russia declared war on Ukraine, significantly affecting cryptocurrency markets. Prices of Bitcoin, Ethereum, and many others plunged a few hours after Russian President Vladimir Putin made the declaration and launched full-scale attacks.
Luckily, many traders seemed to have shaken off the Russia-Ukraine crisis, and prices rose again later on Thursday, February 24.
Falling: Crypto Crashes in Russia-Ukraine War Declaration
Russia’s attack by land, air, and sea was the largest made by a European state against another since World War II. Fear looms that this might be the beginning of WW3, affecting the crypto economy significantly.
Amid the attacks, cryptocurrencies took a nosedive, falling as a whole at 7.97%, thereby erasing more than $150 billion in value within just 24 hours.
Bitcoin’s value fell below $35,000 early Thursday, losing almost half its November high of $68,990 due to these geopolitical tensions.
Other cryptocurrencies were also hit hard. Ethereum was down more than 12%, while dogecoin fell more than 14%.
In their fall, Bitcoin and other crypto behaved much like stocks. Market observers have therefore remarked that crypto isn’t quite like the safe haven it was painted to be, after all.
Senior market analyst Edward Moya said a lot of “crypto investors have been humbled by the last crash.”
Rising Again: Cryptocurrencies Get Back Up After Biden Presents New Sanctions Against Russia
US President Joe Biden said that the US will introduce a wave of severe sanctions against Russia. Such would limit Russia’s ability to do business in dollars, pounds, euros, and yen.
Bitcoin later rose to 1.7% higher, while Ether, to 0,2%, according to CoinMetrics.
How Might Crypto Investors Cope
Vikram Subburaj, CEO of Giottus Crypto Exchange, notes that the panic sell that came after the war declaration is an “expected reaction to any global crisis.”
He further suggests that long-term investors will likely take advantage of the crisis and buy crypto assets with solid fundamentals. These include Bitcoin and Ethereum.
On the other hand, the same long-term investors may do well to avoid high-risk cryptocurrencies such as meme coins.
Cousins Dogecoin and Shiba Inu, for example, have crashed down 20%, curbing a significant loss in their value.
Memecoins such as these two have been on a downward trend for a while now. So, it’s not yet clear if the current drop would only continue according to the Russia-Ukraine war, or if it will decline even more, soon.
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