Crypto’s market cap slumps to $1.5 trillion after Russia launched an attack on Ukraine back on Thursday as we reported in our cryptocurrency news today.
The crypto market tumbled by 9% with some analysts saying that the asset is a risky offering. Crypto’s market cap slumps to $1.5 trillion and lost 9% in the past 24 hours after Russia launched a special military operation against Ukraine. The prospect of damaging to the global economy weighed on broader financial markets with the Stoxx 600 Europe index falling more than 3% and Russia’s MOEX equity index dropping a record 28%.
In the past 24 hours, BTC dropped by 8% and hit $34,725 in the early Asian hours. The fear and green index was a tool used to calculate public sentiment of the crypto market and dropped 2 points to a fear level reading of 23. The tension around Ukraine exerted strong pressure on risky assets according to FXPro analyst Alex Kuptisikevch:
“There are growing risks of escalation associated with the introduction of Russian troops into Donbass. In such a situation, risky assets may continue to decline further.”
The drop in crypto shows the sector remains a nascent asset class comapred with the traditional markets:
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“We see that cryptocurrencies are selling stronger than developed world stocks, confirming the risky nature of these assets and how they are not a replacement for gold.”
The losses on the crypto-tracked futures reached over $250 million during the early Asian hours as most cryptocurrencies crashed by 10% and in the past 24 hours, ETH lost 12% of the value with Cardano’s ADA and SOL dropping as much as 16%. The investors continue to hold BTC as per the metrics tracked on Glassnode but the wallets of long-term investors hold record volumes of BTC at 76.5% despite the drop in prices which suggests that some investors continue to nurture the heading capabilities of the world’s biggest cryptocurrency.
Bitcoin reminded me of the enhanced volatility in the past day or so after a huge price slump to over $34,000 and a fast recovery to above $38,000. Most other altcoins are also in the green on a daily scale after some strong retracement from a day ago. The not-so-boring days in the crypto space received furhter validation over the past few days and BTC for example, challenged the $39,000 before it started to lose value gradually after the Russian attack on Ukraine.
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