Bitcoin Price Crashed 10% After Russia Attack on Ukraine

The uncertainties and increasing escalations surrounding the Ukraine conflict are hitting the high spots. On February 24, Russian President Vladimir Putin announced a ‘special military operation’ in Ukraine. The financial markets, strained by the conflict, continued to weaken significantly. 

The recent events also affected cryptocurrency rates. After a brief recovery, bitcoin temporarily fell to $34,475. Recently, the Ukrainian parliament has passed a bill that would legalize and regulate cryptocurrencies. However, the country’s progress and security are now under acute threat.

Putin Attacks Ukraine & Markets Fall

After Russian President Vladimir Putin declared on national TV that his army would conduct a ‘special military operation’ in Ukraine, global cryptocurrency and stock markets plummeted. Thus, last week, Putin ordered a special military operation in Ukraine’s Donbas region. He first addressed Ukrainian soldiers:

I beg you to lay down your arms and return home. All Ukrainian Army soldiers who meet this requirement will be allowed to leave the combat zone and return to their families.

As the sun rose in Ukraine, the Russian army fired rockets across the country, including the capital Kyiv and the city of Kharkiv. Tensions between the two countries have negatively impacted world markets amid fears that the conflict between the two countries could escalate into a larger war involving other countries as well.

Some cryptocurrencies lost up to 10 percent in price. The total crypto market cap decreased 8.25 percent to $1.58 trillion.

Ukraine Legalizes Crypto Trading

A few weeks ago, Ukraine’s government legalized cryptocurrency trading amid rising tensions with Russia, whose troops were stationed on Ukraine’s borders awaiting President Putin’s decision.

Recently, Deputy Prime Minister of Ukraine Mykhailo Fedorov tweeted:

Bitcoin donations to various volunteers and hacking organizations have skyrocketed over the past year, or two as the threat of invasion has long hung in the air. According to a blockchain analytics provider Elliptic report, some of those donations were used to modernize government troops in 2021.

Ethereum Founder Condemns Russia’s Attack

Vitalik Buterin, the Canadian-Russian founder of Ethereum who has lived in Kolomna, Russia for six years, tweeted how disappointed he is with Putin’s decision.

The English translation is as follows:

I’m very upset by Putin’s decision to abandon the possibility of a peaceful solution to the dispute with Ukraine and go to war instead. This is a crime against the Ukrainian and Russian people. I want to wish everyone security, although I know that there will be no security. Glory to Ukraine.

He also later tweeted:

Russia and Cryptocurrencies

A few weeks ago, Russia introduced new regulations for cryptocurrencies. As Russian media reports, Bitcoin can be classified as a foreign currency. This means that licensed providers will be able to accept cryptocurrency transactions.

However, cryptocurrencies need to be converted into rubles for daily transactions. The tax authorities must approve cryptocurrency transactions of about 600,000 rubles.

Still, the positive news from Ukraine and Russia on the further handling of cryptocurrencies is taking a back seat due to the current circumstances.

Like Vitalik Buterin, retail cryptocurrency trader, Altcoin Sherpa, supports the Ukrainian people and tweets:

Conclusion

Currently, the financial market is taking a back seat since now we should all be thinking of the Ukrainian people. It is hard to believe that a military conflict would break out in Europe in the 21st century. And yet it has happened now. The fear of further escalations is understandably increasing. People will have to leave their homes and seek shelter. Thus, negative effects on the global financial market are of secondary importance.

If you want to support Ukraine, make sure to read our blog article. Glory to Ukraine!

Nevertheless, the current decline in bitcoin price also offers a good opportunity to buy some crypto at bargain prices. If you’re interested in buying BTC, you should definitely think about doing this at Switchere. On our platform, you have an opportunity to buy leading cryptocurrencies in the fastest and most convenient ways using any available payment method. Moreover, from February 24th, 10% of the Switchere service fee collected will support Ukraine and restore peace and justice.

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