Bitcoin Price Dropped Amid Russian Attack on Ukraine

The bitcoin price was declined by $35 thousand on Thursday. The move came after the announcement of Russian President Vladimir Putin for a military attack in the region of Donbas, Ukraine. However, bitcoin was trading at $34,970 on Thursday and was considered a big drop around 8% from the previous day.

The cryptocurrency also dropped over the weekend below $40 thousand. It is the most valuable in the world but has shown a continuous decrease amid the intense Ukraine crisis.

Moreover, the bitcoin currency has lost around half its worth since its rise in November of $68,992 following geopolitical tensions. Some major economies on digital assets restrained hope of interest rate increase by the US Federal Reserve.

On Thursday, other cryptocurrencies also experienced a significant drop. The CoinMarketCap confirmed that Ethereum dropped at least 12%, while Dogecoin declined at least 14%. Both cryptocurrencies were trading earlier at $2,349 and 10 cents, respectively.

A senior market analyst, David Edward, said most crypto investors were showing fear due to the last major drop. The investors are hesitating to improve holdings given the immense ambiguity for unsafe assets.

Edward also predicted that bitcoin could probably continue experiencing handsome resistance from the $40 thousand level. He added that the current severe geopolitical situation will supposedly stop unsafe assets from boosting, like a rally.

Russian Attack on Ukraine Affected Cryptocurrency Price

On Friday morning, the bitcoin price was around $38 thousand, stumbling back from a fall caused by the Russian attack on Ukraine. While the decline in the price of cryptocurrency on Thursday morning bottomed out at around $35 thousand.

But bitcoin came back in the afternoon and increased around $38 thousand. The currency traded more elevated in 2 of the last 3 days, aiming into Friday, but went down at least 17%.

The shares of Coinbase Global decreased at least 3% in just one hour because the cryptocurrency exchange was alarmed that amplification could sluggish during the current quarter.

The trading volumes of Coinbase were reportedly increased at least 67% to $547 billion in this quarter. Meanwhile, the retail trading added 32% in the volumes and crypto-assets participated with 68% in total trading.

The higher volatility levels and powerful interest from consumers in crypto-assets were behind the consecutive growth in retail Trading Volume. Moreover, the market capitalization of entire cryptocurrencies has dropped around $200 billion.

It was a decrease of around 12% during the past 24 hours. The current market capitalization of cryptocurrencies was estimated at around $1.56 trillion, a drop from an increase of $1.77 trillion.

Bitcoin was at just over $35,400 at the time of reporting. It shows a drop of around 18% during the last week and a significant decrease of around 9% in the past 24 hours. The 2nd largest cryptocurrency, Ethereum dropped around 12% on the day and fell over 22% during the last week to a price around $2,370.

Other Cryptocurrencies Also Experienced a Decline in Prices

Cardano, XRP, and Solana have also experienced double-digit drops during the last 24 hours. Cardano dropped 17%, XRP fell 13%, and Solana decreased around 10%.

The cryptocurrency market declined simultaneously with the broader financial market. The major reason behind the disaster was the Russian military operation against Ukraine. Russian equities have decreased at least $250 billion because its economy swirls from the result of international sanctions.

The Bank of Russia said the central bank has taken measures to interfere in the foreign exchange market. It would provide over $11.5 billion to the state bank to maintain liquidity.

It is important that the increasing Bitcoin donations will support the Ukrainian military. Pro-Ukrainian groups have collected around $4 million in cryptocurrency since the Russian invasion of Ukraine. These groups are receiving donations in cryptocurrency because it is easy and faster.