Bitcoin falls 7% as tensions rise between Russia and the West; What are the consequences of 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 a military conflict between the two countries intensified. Russia has sent troops to eastern Ukraine, and the Biden government has responded by tightening sanctions. According to experts, the increasing hostility of Russia to relations with Western powers could deal a severe blow to the global economy.

To Report In a televised address to his country’s citizens yesterday, Russian President Vladimir Putin said he recognized the sovereignty of the two pro-Russian separatist sects in eastern Ukraine. In part, Putin also raised the issue of an invasion of 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. Putin yesterday ordered 150,000 Russian troops to be sent to separatist units in Ukraine on what he called a “peacekeeping” mission in the region. According to the latest reports, these troops are getting closer to the Ukrainian border at any moment.

As the Ukraine-Russia conflict could push up energy prices in world markets, financial market investors have also been trying harder in recent weeks to avoid risk-taking. Biden, meanwhile, issued an executive order yesterday extending sanctions he had previously imposed on the Russian government. New sanctions imposed by the US government and its European allies, followed by Russia’s retaliatory measures, could hit the global economy by intensifying inflation and disrupting the supply chain of many basic commodities.

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

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

“Susannah Streeter, senior analyst at Hargreaves Lansdown Financial Institution, said:

Financial market conditions now seem very sensitive. The temporary self-confidence of investors can always be quickly eroded, and this is exactly what we are witnessing today after the escalation of tensions between Russia and Western powers.