Summary: Cryptocurrency price continues to drop in face of Russia and Ukraine conflict.
Going Deeper…
Russia and Ukraine. On February 24th, Putin announced his invasion of Ukraine. There is a growing Russian military presence at Ukraine's borders. The United States and its allies will impose severe sanctions on Russia after the attacks to protect their fellow NATO members.
Why Cryptocurrency price decreases. The crypto market has matured and grown stronger in the recent year. Hence, cryptocurrency will also be strongly affected by the economic and political affairs around the world as the number of large investment institutions invested in this market increases. This happens because the way these investment institutions react to the market is similar to what is happening globally. This leads to cryptocurrency being affected, along with other markets like stocks, in the short term.
Conflict in opinion. Some said investors will, in a tense situation, prioritize commodities such as gold and crude oil rather than riskier stocks and cryptos," said Griffin Ardern, a volatility trader from crypto-asset management company Blofin. On the other hand, some disagreed. Andrew Durgee, the head of crypto and tokenization at Republic, argued that volatility is the "nature of the industry" and it will continue - in large part fueled by current geopolitical events. Some also believe that crypto is a long-term storage asset in the long-run.
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