Conflict in Ukraine: The crypto market plunges
As expected in the event of an escalation in the crisis between Russia and Ukraine, the crypto market has just fallen sharply: – 8% over the last 24 hours.
By announcing a military operation on Ukrainian soil this morning, Vladimir Putin has just pushed the conflict to a new stage: that of war. A new status which explains the sharp drop in the crypto market today.
Bitcoin: The Barometer Unscrews
A true barometer of the health of the crypto market, Bitcoin obviously did not escape the violent decline in the crypto market.
At the time of writing, the price of Bitcoin is at $35,630, down 8.71% over the past 24 hours. A drop that remains roughly similar to the overall drop in the crypto market.
Altcoins Are Giving Up Even More Ground
If the course of Bitcoin has been very largely mistreated, it is clear that the altcoins are even more so. And in this little game of the main altcoins, the palm goes to the course of the Cardano (ADA) which has given up more than 16% over the last 24 hours. Of the top 10 altcoins, 7 are posting double-digit declines over this same time frame.
The following table shows the price of the 10 main altcoins (excluding stablecoins) and their evolution over the last 24 hours:
|Crypto||Current course||Evolution over 24 hours|
|Ethereum (ETH)||$2,384.28||– 11.78%|
|Binance Coin (BNB)||$337.92||– 10.84%|
|XRP (XRP)||0.6389||– 12.02%|
|Solana (SOL)||$82.89||– 7.74%|
|Cardano (ADA)||$0.7755||– 16.11%|
|Terra (LUNA)||$53.09||– 7.07%|
|Avalanche (AVAX)||$67.79||– 13.57%|
|Dogecoin (DOGE)||$0.1131||– 15.07%|
|Polkadot (DOT)||$14.44||– 15.33%|
|Shiba Inu (SHIB)||$0.00002196||– 14.62%|
If we stick to the top 100, all the projects are displayed in the red. According to data from Coinmarketcap, the global crypto marketcap today stands at $1.6 trillion, down 8% over the past 24 hours. In just a few hours, the sector has just abandoned nearly $150 billion, equivalent to half of Ethereum’s marketcap or the cumulative marketcap of the Binance Coin, Cardano, XRP, Solana and Terra projects. Just that!!
A Buying Opportunity?
As a general rule, a violent phase of decline is often an attractive entry point for investors. Especially since the markets sometimes tend to over-emphasize information, creating “panic-sell” movements along the way.
Either way, investors will keep a close eye on developments in the Russian-Ukrainian conflict. And on this point, the variables remain extremely clear: appeasement would push the market higher again while an escalation of tensions and a new escalation of violence could contribute to sinking the crypto market even lower.