Bitcoin prices fell on Thursday after global geopolitical tensions reached unprecedented heights.
Thursday’s second round negotiations between Ukrainian and Russian officials did not result in an agreement to end the conflict.
The markets became more jittery as a result of the impasse. That caused the prices for safe haven assets like gold and the US dollars to rise.
Bitcoin was moving in an identical way to other high-risk assets, such as tech stocks, before the Russian invasion.
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Investors expect that the United States Federal Reserve (USF Reserve) will soon raise interest rates to address rising inflation.
When interest rates rise, money is transferred from more risky assets such as bitcoin to stocks in banks and other companies that are performing well.
Bitcoin Prices Vulnerability, Investor Worry
Bitcoin is now more vulnerable to volatility on the stock markets in the US due to a change in the environment.
Bitcoin investors should be worried about the current geopolitical situation. They won’t rest until Russia and Ukraine are resolved.
Due to the current circumstances, Bitcoin has fallen 10% and 38% since November 2021 when it reached its highest point.
For their safety, crypto miners must keep their fingers crossed that tensions between Russia & Ukraine do not worsen.
BTC market capital at $787.22 Billion in daily chart | Source: TradingView.com
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Swapping Rubles For Bitcoin
Russians are swapping their depreciating rubles for bitcoin to lessen the impact of international economic sanctions imposed in response to their country’s attack on Ukraine.
Because of the government’s restrictions on residents’ capacity to conduct electronic cash transfers, Ukrainians increasingly resort to bitcoin and other stablecoins backed by the US dollar.
Volatility and inflation triggered by the Russian invasion have led Bitcoin’s value to fall 4.82% in the last 24 hours, with a low of $41,104.75 and a high of $44,079.23, which is lower than in previous weeks.
Both Ethereum (ETH) and Cardano (ADA) saw a price reduction as a result of Bitcoin’s decline.
Ethereum’s current price is $2722.38. It has fallen by 6.39% over the past 24 hours. The lowest Ethereum prices were $2,692.05, and highest at $2,934.50. Cardano’s price is now $0.874909, down 5.36% from the last day.
Potential Nuclear Disaster
Meanwhile, it was reported early Friday morning that Enerhodar, Ukraine’s largest nuclear power station, was on fire after being bombed by Russian soldiers, raising fears of a nuclear calamity.
Investors panicked in the crypto industry when this news broke, and some rushed to get rid of crypto assets and find safe alternatives.
According to a spokesperson for the facility, Russian artillery fire directly targeted the Zaporizhzhia nuclear power plant, and one of the facility’s six reactors caught fire.
Officials at the nuclear plant stated that even though the reactor was deactivated it still contained nuclear fuel, so anything could happen.
Featured image by Cryptopolitan. Chart by TradingView.com