All You Need to Know About Crypto Market’s Reaction to the Russia-Ukraine ConflictMarch 10, 2022
Some recent social media posts suggest that Russia has already started to start the military invasion of Ukraine. Meanwhile, the Kremlin capital of Russia maintains that the country is merely conducting some special military expeditions. At any rate, the political leadership of the entire world is currently concentrating on this matter and in a state of high alert.
With the implications surrounding Ukraine invasion, Bitcoin took a deep dive and dropped to $35K per unit. During the last 24 hours, top coin prices plunged by 8.50%, and on-chain data analytics confirm that in the last week, around 20.30%. The second-highest-ranking token, Ethereum, also cascaded by 7.89%, intraday.
Santiment, the on-chain cryptocurrency market environment, and investors mindset scale recently shared the report. The report suggests that the Fear and Greed index for Bitcoin and other cryptocurrencies has entered into extreme fear. Another noticeable observation by the Sentiment indicated that the majority of investors are not showing an interest in buying the dip.
The FUD or fear, uncertainty, and doubt state of the market is a good sign since it will stop the bears from pushing the Bitcoin prices lower. Coinglass statistics revealed that during the last 24 hours, around $416.70 million worth of cryptocurrencies were sent back into the circulations, with $75.57 accounting for Bitcoin liquidations alone.
Stock Market and Geopolitical Pressure
Cryptocurrency trader and market analyst Lark Davis recently tweeted that the S&P500 index crashed by several points during the last few days. Bitcoin’s strong link with the tech-related stocks makes the cryptocurrencies exchanges and other related commercial enterprises have started to tense up.
The Ethereum gas price tracker, suggested average gas fees have dropped from 435 gwei to 200 gwei, which is a clear indicator of slowing of the on-chain activity on the network. The drop in traffic on the Ethereum network can lead to a decrease in the trading volume of the network. Ethereum founder Vitalik Buterin recently tweeted that he was not neutral on the matter, but the Ethereum network does not intend to take sides.