Bitcoin plummeted as financial markets reacted to fears of a Russian strike on a Ukrainian nuclear power station. The most valuable cryptocurrency fell 2.4 percent to $41,093. Ether, the second-largest cryptocurrency, dropped as much as 4.1 percent to $2,691. According to CoinGecko prices, most other popular coins were also down during the last 24 hours to 10:50 a.m. in Hong Kong.
After being hit by Russian shelling, Ukraine’s government reported Europe’s largest nuclear power station, the Zaporizhzhia reactor near Enerhodar, was on fire, increasing safety worries and upping the stakes of Vladimir Putin’s invasion. In a report published Thursday, Sean Farrell, head of digital-asset strategy at Fundstrat, wrote, “Ongoing geopolitical strife and economic uncertainty might result in ongoing volatility. If we see another substantial bout of downward pressure on pricing,” he added, referring to Bitcoin, “recent precedent gives us some confidence that there will be purchasers who step up” in the $33,000 to $35,000 region.”
Bitcoin and other cryptocurrencies spiked earlier this week on speculation that they might gain traction as a result of Russia’s invasion of Ukraine. Concerns about the impact of international sanctions on Russia hindered the progress. While some pitch Bitcoin as a safe haven investment, it has recently traded more in line with risk assets such as U.S. equities.
The ferocious financial backlash unleashed in the process is visible around the world, not just on Russian President Vladimir Putin’s situation, as the Russia-Ukraine war entered its second week, with the former proceeding its attacks on crowded Ukrainian cities with long convoys of Russian tanks and other vehicles.
According to various news sources, the protracted war has hurt sectors that rely on the supply of raw materials, particularly industrial goods, while Russia suffers the weight of Western sanctions, which include shutting off several Russian banks from the interbank payments system SWIFT.
Furthermore, the consequences are endangering the global economy, causing financial markets to tremble, and making life more dangerous for everyone.