The Effects of Russia-Ukraine War on Crypto Market
Putin's invasion of Ukraine directly affected the stock market, but surprisingly, cryptocurrencies also took a hit. There was a time when the stock market and cryptocurrencies were thought to be unrelated, but recent events have portrayed their close relationship. While gold is doing well right now, Bitcoin and other cryptocurrencies are plunging faster than stocks.
According to CoinMarketCap, the cryptocurrency market has lost approximately 5% since the war started, standing at $1.6 trillion. In less than half an hour, Bitcoin descended from $37,000 to below $35,500. Elliptic's blockchain analysis reveals that $35 million worth of digital currency has been donated to Ukraine since the start of the invasion.
Last year in November, a report by the New York Times highlighted the efforts of the Ukrainian government to promote cryptocurrencies in the country and debated if the country could become the crypto capital of the world. Amidst all this crisis, the crypto market is bound to suffer unless the situation stabilizes for both countries.