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Highlights
- Prices of leading cryptocurrencies like Bitcoin and Ethereum witnessed a decline over the last seven days as geopolitical tensions surmounted.
- The downtrend was mirrored by other popular cryptos like Cardano, Avalanche, Solana, Polkadot, and Polygon, among others.
- However, stablecoins like Tether and the USD Coin seem less affected by ongoing Ukraine woes.
The global crypto market witnessed a steep decline on Thursday as geopolitical tensions between Russia and Ukraine rose, with Vladimir Putin, the Russian president, ordering military operations in eastern Ukraine.
Thursday, the crypto market witnessed a liquidation of nearly US$242 million as crypto investors reacted to Russian troops moving further into Ukraine.
Related Read: Cryptocurrencies suffer huge selloffs as Putin orders military operations in Ukraine
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Bitcoin and major cryptos tumbled over the week amid ongoing geopolitical tensions
Over the last seven days, prices of Bitcoin, the oldest and the largest cryptocurrency, fell by 4.76% and is valued at US$38,797.02, at the time of writing.
It is pointed out that currently, in 2022, Bitcoin is down by nearly 19% YTD and still has a long road to cover, i.e., the crypto is almost 46% away from its record high of almost US$69,000, which was recorded in November.
Ethereum, the second-largest crypto, dipped 9.57% in the past week and is currently trading at US$2,624.57.
Other altcoins like Cardano, Avalanche, and XRP tumbled down by 17.38%, 16%, and 11.58%, respectively, as the fear of Russia invading Ukraine grappled the entire world, including the global crypto market.
Meme tokens like SHIB and DOGE, too, witnessed a drop of 16.88% and 12.62%, respectively, in their prices over the last seven days.
The value of several other cryptos also tanked as Solana, Polkadot, Polygon, Litecoin, and BNB’s prices witnessed a fall during the week.
Interesting Read: The Sandbox & 2 other most popular cryptos this week at Easy Crypto
Investors wary of putting money into cryptos
Many crypto investors have been humbled by the recent crash in the crypto market, which, apart from geopolitical tensions, was due to other factors like a possible increase in interest rate by the US Federal Reserve and bans by some of the leading economies on digital assets.
Also Read: Will Joe Biden’s crypto EO signal the start of crypto regulations?
Hence, they are reluctant to increase their holdings in these crypto assets given the uncertainties associated with them.
Stablecoins not affected by Ukraine’s woes
However, some cryptos are holding their value amid Putin’s invasion of Ukraine and seem to be not much affected by the geopolitical turmoil.
Stablecoins like Tether and the USD Coin have stayed at around US$1 since November 2021, as their prices are tied to a fiat currency like the US$ and hence, see fewer price fluctuations.
Do Read: Which unique features make Tether crypto a haven for investors?
It has been seen that many crypto traders, instead of moving their money out of the crypto market, are increasingly investing in stablecoins, cites one of the officials from the foreign exchange and crypto research department at UBS.
Must Read: 5 must-read crypto trading tips for beginners
Bottom Line
Investing in cryptocurrencies may tend to be lucrative; however, thorough research and analysis should be done while taking a dip into the vast pool of cryptos as they are extremely volatile and risky in nature.
Disclaimer: Crypto is a very risky space, a lot of spams are noticed around this and a thorough due diligence is needed when looking at the same.
