Bitcoin and Ether plunge as Russia attacks Ukraine

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Bitcoin
fell to its lowest level in a month when Russia launched a full-scale invasion of Ukraine.

Bitcoin, the world’s largest cryptocurrency, has fallen 8% in the past 24 hours to $35,556, according to CoinDesk, after Russian President Vladimir Putin launched an attack on Ukraine, with Russian troops and tanks entering Ukraine and airstrikes in the Ukrainian capital and other cities. Bitcoin fell to $34,338, the lowest levels since late January.


Ether,

the second largest digital currency, fell 12% to $2,381.

Bitcoin and Ether remain far from their all-time highs of $68,990 and $4,865, respectively, which were hit in early November.

“Gold hit $1,950, its highest level since late 2020. Bitcoin plunged 5% to $35,000…I think we’re finding out which one is the real safe haven,” Neil said. Wilson, chief market analyst for Markets.com.

Edward Moya, senior market analyst at Oanda, said in comments before Russia launched its attack on Ukraine that “cryptos remain the ultimate risky asset” and that escalating Russian-Ukrainian tensions “will keep probably high volatility with 20% swings in any direction.”

Bitcoin has also fallen this year – it fell 23.3% in 2022 – on the prospect of rising US interest rates. Moya noted how Bitcoin was “beaten” on Federal Reserve tightening bets “but most of these risks are about to be priced in.

“It’s been a brutal crypto winter, but it could end once we get past that first rate hike from the Fed.”

The US central bank is expected to start raising rates next month.

Write to Joe Woelfel at [email protected]


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