Russia-Ukraine Crisis | Crypto markets
Russia-Ukraine crisis: Crypto markets feel the heat
While the economies across the world are bracing for a tough period following the Russia-Ukraine crisis, the global crypto markets are already feeling the heat, sliding more than 11 percent, said media reports.
As Russia sent troops to Ukraine in what it called a "special military operation" global markets felt the shock ripples and the most valuable crypto assets slid between 10 percent and 18 percent.
On Thursday, Bitcoin slipped $35,000 below its lowest level since January 24 but grew to $39,308 on Friday, according to market tracker coingecko.com.
Ethereum's token dropped by 14 percent since Wednesday evening while Indian crypto exchanges trading 50-100 percent between Wednesday and Thursday, according to Coinmarketcap.com. At the the time of writing this report, it had recovered from the previous fall.
However, Indian retail investors showed mixed behaviour with seasoned investors "buying the dip" and smaller portfolio ones cashing out their crypto holding, said exchange executives, according to an ET report.
Indian investors had to face "crypto winter" throughout 2018 as crypto markets slumped while they had to deal with regulatory uncertainty in the last two months, including high rate of taxationn crypto gains.
Further high rate of volatility on digital assets washed out the gains pushing their investments into the red.
Crypto investors feel if the war between Russia and Ukraine escalates, there could be more selling.
Retail investors are panicked as the value of their investments are diminishing after the huge fall.
However, experienced cryptoinvestors think that "the key here is to hold on to good projects with strong fundamentals".
The report said that some small investors had tried "buying the dips" and brought more coins in hopes of averaging out their investments, but now they can't sell as it would result in bigger losses.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
