The price of Bitcoin has experienced a bumpy ride since its November 2021 peak, but it was somehow steady during the second week in February. However, analysts predict a volatile few more weeks, especially during the ongoing European crisis.
But the calm period was interrupted after it was reported that Russia recognised two republics in Ukraine. The US and other European countries are planning sanctions for Russia soon. However, the political tensions have generated deep waves in the financial markets since the beginning.
Due to rising tensions at the Ukraine border, the leading cryptocurrency has seen its value drop by almost 15% in the past week.
Bitcoin’s value has fallen by more than 5% in the past day, following Russia’s president Vladimir Putin, announcement and is now close to the $37,000 threshold. Ethereum also fell by over 7% over the past 24 hours, and currently has a value of around $2,600
The most impacted cryptos dropped by more than 16%, including Theta Fuel, Harmony One and Neo. Memecoins such as Dogecoin and Shiba Inu have seen their value drop by 7-10% during this period.
The total crypto market has fallen by 6%in the past day, as it reached a total value of $1.67 trillion.
On February 1st, Coinbase reported that there was a net inflow to stablecoins, a crypto reserve asset, totalling $3.5 billion between November 2021 and January 2022 due to market volatility. This signalled that traders were fleeing to safety on Coinbase’s exchange, of the leading cryptocurrency exchanges. However, the company doesn’t expect another 2018 bear market.