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The Implications Of Russia’s War On Ukraine On Cryptocurrency Markets

Key Points

  • The Russia-Ukraine situation has affected alike crypto and regular marketplaces.
  • Crypto investments worth over $450 million were liquidated.
  • Gold is becoming more popular as a sound investment.

Given the sudden conflict seen between Russian Federation and Ukraine, capitalists throughout the globe have been concerned about the possibility of another war breaking out. Late Wednesday, numerous news sites reported that Russia had begun an attack on Ukrainian territory, escalating the situation.

Cryptocurrency Has Been Used To Liquidate Over $450 Million.

Dealers of crypto derivative products, particularly some with open Bitcoin long bets, were not immune to the setbacks. As per Coinglass statistics, around $455.62 million worth of cryptocurrency holdings have already been liquidated in the last 24 hours, with the biggest single dissolution order on BitMEX – LINKUSD estimated at $3.21 million – taking place. BTC holdings were over $140 million, trailed by Ether holdings totaling $120.24 million.

In the aftermath of the announcement about Russia’s attack, approximately $1 million worth of cryptocurrency holdings immediately liquidated on Compound Finance, putting Defi dealers at a disadvantage.

The Current Market Situation

The recent tensions between Russia and Ukraine are negative for bitcoin and the global economy. War rumors cause shareholders to be fearful, and this is bad for any marketplace. As a result, if the conflict between Russia and Ukraine worsens, cryptocurrencies are inclined to take a knock.

Nevertheless, the current circumstances may showcase the world’s largest chosen safe-haven commodity, which may be gold or Bitcoin, as individuals are inclined to begin following onto what they believe will preserve their investment if the situation worsens.

The dispute over which asset is the “best safe-haven asset” has raged between gold and Bitcoin advocates, with Bitcoin enthusiasts constantly referring to price discrepancies and development.

“Falling prices looks to be causing a lot of activity in India’s cryptocurrency industry, resulting in greater trade volumes on practically all of the country’s cryptocurrency exchanges.” “USDT and BTC have controlled over 50% of today’s local trading volumes, and their trading activity has increased by 30% since Wednesday,” said Nischal Shetty, co-founder of WazirX.

Sustainable coin transaction volumes have indeed been greater, according to Edul Patel, Mudrex’s co-founder, and CEO. “Stable coins were taken by fortunate speculators who booked gains. Furthermore, anyone seeking a good deal on cryptocurrencies may keep their constant coin bags full,” he added.

Trading volumes have had such a shaky start from the year, with the US Federal Reserve hinting at a likely price rise, and values of cryptocurrency might continue to fall over the next week. “Bitcoin prices may touch $30,000 limits before rising,” said Sidharth Sogani, founder of Crebaco, a cryptocurrencies research organization. “This is because the US is anticipated to issue cryptocurrency rules, that might lead values to fall even more if they are adverse,” he added.

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