The cryptocurrency market fell on Friday as Wednesday’s gains faded in the aftermath of swiftly growing tensions between Russia and Ukraine. Markets have been roiled since Russian President Vladimir Putin said on television that his army will conduct a special military operation intended at demilitarizing and degasifying Ukraine.
The military attack on Ukraine began on February 24th, when missile explosions were reported in Kyiv and other towns like as Kharkiv, Dnipro, and Mariupol. These conflicts appear to have spooked investors by creating uncertainty in the markets.
According to CoinMarketCap data, the benchmark cryptocurrency is currently trading at $38,839.50, a 6.44 percent loss in the last 24 hours. Ethereum, the second-largest cryptocurrency in the business, is down 5.85 percent on the day to a current price of $2,643.
In recent years, there has been much discussion about whether bitcoin is eroding gold’s market share as a store of value asset. With bitcoin taking a beating as a result of the Ukraine situation, investors are questioning its safe-haven status.
On the other hand, gold climbed around 2% to its highest level in in a year as investors flocked to the precious metal. The gold market is gaining traction as investors prepare for another tumultuous weekend, with all eyes on Russia’s increasing aggression towards Ukraine.
On Friday, gold rose more than $35 as Russian forces in Ukraine launched a terrifying assault on Europe’s largest nuclear power facility. Many other crypto assets suffered huge losses, including Terra (LUNA), Solana (SOL), Polkadot (DOT), and Shiba Inu (SHIB), as the overall crypto market capitalization plunged 9.61 percent to $1.7 trillion.
Mainstream marketplaces have done no better. Overnight, the Dow Jones Industrial Average and the Standard & Poor’s 500 both fell 1.9 percent. The MOEX, a prominent stock index that tracks Russia’s 50 largest and most liquid corporations, has also fallen 20% since yesterday.
Ukraine is one of the countries with the highest rates of bitcoin adoption in the world. The path to cryptocurrency legalization in the country of Eastern Europe has been in the works for quite some time.
To alleviate tensions, the US and some of its allies are rallying behind Ukraine and slamming Russia with harsh sanctions, but fears continue that Russia may turn to cryptocurrencies to dodge sanctions.