Crypto Market Crashes after Putin Announcing Military Operations against Ukraine

The cryptocurrency market is full of bearish sentiment right after Russia launched the latest military operations against Ukraine.

Bitcoin, the leading cryptocurrency, plunged over 7.8%, trading at around $34.7K during the Asia-time trading section, according to CoinMarketCap.

The downtrend of bitcoin has similarly affected other leading cryptocurrencies such as Ethereum (ETH), Binance coin (BNB), ripple (XRP) and Cardano (ADA).

Ethereum, the second-largest cryptocurrency by market capitalisation, also fell over 9.5 % over the last 24 hours, trading at around $2376 at present.

According to online media Outlook, citing Gaurav Dahake, CEO and founder, Bitbns, said “geopolitical pressure and a potential war breaking out have elevated the volatility levels in the markets. Overall, the momentum signals and upside seem to be limited,” 

Putin announced a “military operation” in Ukraine’s Donbas region on Thursday local time, requesting Kyiv forces to surrender, according to Reuters and the Financial Times. Reportedly, explosions were heard in Kyiv, the capital of Ukraine, as well. Joe Biden, President of the U.S., denounced Russian attacks, claiming “will hold Russia accountable”.

Prior to the full-scale invasion, Ukraine has approved legalising Bitcoin domestically recently. Some organisations reportedly have been receiving crypto donations as a means of aiding military support. 

The U.S. announced to impose a new round of sanctions on Russia on Monday, in response to Russian recognition of the sovereignty to two separatist territories- the Donbas and Lugansk region. Analysts said Russia might turn to crypto in response to the latest round of sanctions from the U.S. Meanwhile, Russian authorities considered offering the green light to crypto regulation.

The tension between Russia and Ukraine has affected the strong recovery of bitcoin. Bitcoin’s price had once gained momentum, after the sanction from the U.S.

(Co-authored by Aaron Limbu)

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