Bitcoin is down 7% as tensions between Russia and the West rise; What are the consequences of the war for the market?



The price of bitcoin and many digital currencies fell yesterday as tensions between Russia and Ukraine escalated and the possibility of military conflict between the two countries intensified. Russia has sent troops to eastern Ukraine, and Biden’s government has responded by tightening sanctions. According to experts, Russia’s growing hostility to relations with Western powers could deal a serious blow to the world economy.

According to Kevin Desk, Russian President Vladimir Putin said in a televised address to his country’s citizens yesterday that he recognizes the sovereignty of the two pro-Russian separatist sects in eastern Ukraine. In part, Putin also raised the issue of invading Ukrainian territory, saying that because the current Ukrainian government is pro-Western, it poses a threat to Russia.

Earlier in the day, a Russian government spokesman said there were no specific plans for a meeting between Putin and US President Joe Biden. Yesterday, Putin ordered 150,000 Russian troops to be sent to separatist units in Ukraine for what he called a “peacekeeping” mission in the region. According to the latest information, these troops are approaching the Ukrainian border at any moment.

As the conflict between Ukraine and Russia could raise energy prices on world markets, financial market investors have also been trying harder in recent weeks to avoid taking risks. Biden, meanwhile, issued an executive order yesterday to extend sanctions it had previously imposed on the Russian government. New sanctions imposed by the US government and its European allies, followed by Russia’s response, could hit the global economy by boosting inflation and disrupting the supply chain of many basic goods.

In addition to tightening sanctions against Russia, Biden’s government has imposed sanctions on Ukrainian separatist factions. The price of a barrel of Brent crude oil reached $ 97 per barrel and rose 4% in the last 24 hours.

At the time of writing, bitcoin is trading at about $ 36,900 and has fallen 6% in the last 24 hours. Atrium, the second largest digital currency on the market, lost more than 7.5% of its value during this period and is now trading at $ 2,530.

Susanna Street, a senior analyst at Hargreaves Lansdown, said:

Financial market conditions now seem very sensitive. Temporary investor confidence can always be quickly undermined, and that is exactly what we are witnessing today after the escalation of tensions between Russia and Western powers.

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