As Russia launched a military operation in Ukraine on
Thursday, fearing further price drops, crypto investors offloaded their digital
assets. Bitcoin, the most popular cryptocurrency, slashed to a one-month low
and was trading below USD 35,000 in the noon.
Other altcoins such as Ethereum and Binance Coin too fell 12
per cent on Thursday. The global cryptocurrency market cap is now USD 1.56
trillion, a 9.61 per cent drop in the last 24 hours.
The Dow Jones Industrial Average dipped to its lowest since
the start of the year as the world braces itself for a full-scale invasion of
Ukraine, says CoinDCX. "Mirroring traditional markets, the crypto market
capitalisation dipped into the reds as geopolitical uncertainties grew, drawing
an increasingly interconnected relationship between digital assets and the
financial markets," the exchange said.
While crypto has historically moved inversely to traditional
markets - in the case of the start of the pandemic that triggered bitcoin's
2020 rally - this developing trend could be an indication of the maturation of
the crypto sector and its growing position in mainstream finance, it added.
Going forward, with no end in sight for the ongoing
geopolitical conflict, the digital asset sector may face extended
uncertainties.
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