As tensions between Russia and Ukraine continue to increase, the price of Bitcoin fell to $42,000, after it managed to reach $45,000 for the first time in weeks.
After the US media reported that Russia could attack Ukraine as soon as next Tuesday or Wednesday, the price of Bitcoin began to take a dive. Antony Blinken, the US Secretary of State, declared that we are currently in a situation in which an invasion may happen at any moment.
Countries such as the US, the UK, Finland, and Denmark, have asked their citizens to leave Ukraine ASAP. Even the US embassy has asked its employees to leave the country.
Traditional financial markets have been dealt as a blow as a result of this – the Dow Jones fell by 500 points while Nasdaq dipped by 2%. This also pushed the price of Bitcoin down as we’ve noticed in recent months that the price of Bitcoin is now pretty closely tied to that of traditional financial assets.
What will later happen between Russia and Ukraine could impact Bitcoin and traditional financial markets. High inflation has also led to increased interest rates.
If Russia does invade Ukraine, Europe will be destabilized, as the conflict may extend to other countries, such as Romania or the Baltic nations, and the markets could be pushed even lower.
Let’s not forget that if Bitcoin and traditional markets are to fall, altcoins will definitely follow, which means that we won’t really have a safe haven during these turbulent times.