After attack on Ukraine – can Bitcoin hold up?

Deepak Gupta
Deepak Gupta February 24, 2022
Updated 2022/02/24 at 12:00 PM

“I have decided to carry out a special military operation.” On Thursday night, Russian President Vladimir Putin followed up his threats with action. Ground troops are invading Ukraine from the east from Russia and from the north from Belarus, peaceful cities are being bombed. This war of aggression is also reflected on the stock and crypto market. the Bitcoin is like other assets in seemingly free fall.

Bitcoin: Russia-Ukraine conflict escalates

The effects of the tense situation on the Russian-Ukrainian border have been evident on the market for several days. At 3:00 a.m., Bitcoin crashed with the march. In just 20 minutes, the value of the cryptocurrency fell by around 1,500 US dollars. In the course of the past seven days, she has written losses of a good 14.8 percent. Ethereum even fell by 16.37 percent during this period.

“Once again, cryptoassets prove that the narrative of the supposedly safe haven is a myth,” ntv quotes financial market analyst Timo Emden as saying. In the past, he had repeatedly emphasized that assets such as Bitcoin were by no means an alternative to FIAT currencies. The fact that they offer no protection in uncertain times is once again clearly shown by the current price developments.

The stock markets paint a very similar picture. While the DAX fell by 4.6 percent today, the Russian stock index RTS suffered losses of around 33 percent (as of 11:45 a.m.). First, it remains to be seen when cryptocurrencies and stock indices will recover. Above all, the subsequent sanctions by the international community could further depress prices.

What is happening in Ukraine?

The Russian head of state is aiming for the “demilitarization and denazification” of Ukraine, Putin said in a televised address on Thursday morning. In addition to Ukraine, the member states of NATO also perceive the escalation as an invasion, as a war of aggression. However, the Atlantic alliance will not become military unless a NATO country is attacked.

“The Ukrainian armed forces are waging heavy fighting,” Der Spiegel quoted Mykhailo Podoliak, adviser to Ukrainian President Volodymyr Zelenskyy. “We have casualties,” but the Russian forces have been pushed back in several places. Should someone “try to interfere with us,” Putin threatens, one must know “that Russia’s response will be immediate and will lead to consequences that you have never experienced before.”

Sources: ntv; mirror

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