Bitcoin Prices Dragged Down By Geopolitical Tensions, Ukraine Nuke Plant Bombing

Christian Encila

3 years ago

2 mins read

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Bitcoin prices plummeted on Thursday as global geopolitical tensions escalated to unprecedented levels.

On Thursday, there was no agreement reached to end the war during the second round of negotiations between Russian and Ukrainian officials.

In response to the impasse, markets were jittery, which pushed prices of conventional safe-haven assets up such as gold and the US dollar.

Before the Russian invasion, Bitcoin moved in a manner comparable to that of other risky assets such as technology stocks.

Investors anticipate that the United States Federal Reserve will begin raising interest rates in response to rising inflation in the near future.

Money is being transferred from riskier assets like bitcoin to stocks of banks and other corporations that perform well when interest rates increase.

Bitcoin Prices Vulnerability, Investor Worry

A change in the landscape has made Bitcoin vulnerable to stock market volatility in the US.

As a result, the current geopolitical climate will worry Bitcoin investors. They will remain restless until the situation between Russia and Ukraine is resolved.

Because of the present circumstances, Bitcoin is already down 10% for the year and roughly 38% from its all-time high achieved in November 2021.

As long as tensions between Russia and Ukraine continue to worsen, cryptocurrency miners should keep their fingers crossed for the sake of their safety.

BTC total market cap at $787.22 billion in the daily chart | Source: TradingView.com

Swapping Rubles For Bitcoin

Russians are swapping their depreciating rubles for bitcoin to lessen the impact of international economic sanctions imposed in response to their country’s attack on Ukraine.

Because of the government’s restrictions on residents’ capacity to conduct electronic cash transfers, Ukrainians increasingly resort to bitcoin and other stablecoins backed by the US dollar.

Volatility and inflation triggered by the Russian invasion have led Bitcoin’s value to fall 4.82% in the last 24 hours, with a low of $41,104.75 and a high of $44,079.23, which is lower than in previous weeks.

Both Ethereum (ETH) and Cardano (ADA) saw a price reduction as a result of Bitcoin’s decline.

The current price of Ethereum is $2,722.38; it has decreased by 6.39% in the previous 24 hours, with lows of $2,692.05 and highs of $2,934.50. Cardano’s price is now $0.874909, down 5.36% from the last day.

Potential Nuclear Disaster

Meanwhile, it was reported early Friday morning that Enerhodar, Ukraine’s largest nuclear power station, was on fire after being bombed by Russian soldiers, raising fears of a nuclear calamity.

The news created panic from the crypto sector, with some investors rushing to dispose of their crypto holdings and seek other safe haven alternatives.

According to a spokesperson for the facility, Russian artillery fire directly targeted the Zaporizhzhia nuclear power plant, and one of the facility’s six reactors caught fire.

The nuclear plant official said despite the fact that the reactor has been deactivated, there is still nuclear fuel inside, and anything can happen.

Featured image from Cryptopolitan, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.