Cryptocurrency Drops After Russia Invades Ukraine

FILE PHOTO: A bitcoin is seen in an illustrated photo taken at La Maison du Bitcoin in Paris
FILE PHOTO: A bitcoin is seen in an illustration photo taken at La Maison du Bitcoin in Paris, France, June 23, 2017. REUTERS / Benoit Tessier

February 24, 2022

By Tom Wilson

LONDON (Reuters) – Bitcoin fell to a one-month low on Thursday after Russian forces fired missiles at several cities in Ukraine and landed troops on the country’s coast, leading to a sell-off. riskier assets.

Bitcoin fell as much as 7.9% to $34,324, its lowest level since January 24 and the last trading drop of 4.5%. Smaller coins that typically move in tandem with bitcoin also fell, with ether losing as much as 10.8%.

Russia has launched a full-scale invasion of Ukraine by land, air and sea, the largest single country offensive against another in Europe since World War Two and confirming concerns worst fears of the West.

The United States and its allies will impose “severe sanctions” on Russia following the attacks, US President Joe Biden said. EU foreign affairs chief Josep Borrell also promised the toughest financial sanctions the bloc has ever imposed.

Global stocks and US bond yields fell while the price of the dollar, gold and oil jumped as investors scrambled for safe-haven assets. European stocks alone fell 2.6%.

“We have seen what we expect so far – BTC and the crypto market following equities,” said Jospeh Edwards, head of financial strategy at crypto firm Solrise Group.

“All things tend to be correlated during crises and we’re expecting the same here, so the worse is likely to be in store in the coming days.”

While crypto advocates say bitcoin acts as a safe haven from geopolitical tensions, it often moves in tandem with other riskier assets. Its drop on Thursday has driven it to a loss since hitting a record $69,000 this past November by 50%.

(Reporting by Tom Wilson; editing by Danilo Masoni, Dhara Ranasinghe and Barbara Lewis) Cryptocurrency Drops After Russia Invades Ukraine

Emma Bowman

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