Fears of another war have been looming among investors around the world in recent weeks. Late last night, several media outlets reported that Russia had actually started a war.
Negative reactions to event
Both traditional stock markets and the crypto market reacted very negatively to Russia’s attack on Ukraine. The prices of almost all stocks fell due to investor fears. For example, the S&P 500, the Dow Jones and the Nasdaq fell more than 2%. The AEX and German and French stock markets even fell by more than 4%.
However, the crypto market has been hit even harder. Bitcoin and Ethereum prices fell by 8% and 11% respectively in the past 24 hours. Other major altcoins in the top ten are down at least 10%. As a result, the crypto market has lost more than $400 billion in value in 1 day.
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Over $492 Million in Crypto Liquidated
Traders in crypto derivatives, especially those with long positions in Bitcoin, were not spared. According to data from coin glass approximately $492 million worth of crypto positions have been liquidated in the past 24 hours. The biggest liquidation occurred on BitMEX. In total, more than $157 million worth of Bitcoin positions were liquidated, followed by $138 million in Ethereum.
The new development between Russia and Ukraine is very bad news for the crypto and global market. Rumors of war are creating fear among investors, which is unhealthy for any market. Therefore, cryptocurrencies are likely to take more blows as the crisis between Russia and Ukraine worsens.
Meanwhile, this current situation could also favor gold as a safe haven. This is because people are starting to consider what could better protect their capital should the crisis worsen. The topic of “best safe haven” has been much discussed among gold and Bitcoin proponents. Bitcoin supporters always point to the price differentials and growth.
