How will the war between Ukraine and Russia affect the US and cryptocurrency?

The price of major cryptocurrencies is declining as tensions between Russia and Ukraine escalate. Bitcoin dropped to $ 36,370 on Tuesday after rising as high as $ 44,125 last week, while other popular digital currencies, including Ethereum and Solana, have also fallen recently.

Analysts say the decline indicates that cryptocurrency currency is a bad decision for investors looking to stabilize in times of market turmoil, in contrast to traditional anti-risk fences such as gold and U.S. securities. Treasury.

“The issue of Bitcoin security is almost completely shattered as the potential for military conflict and the collapse of US-Russia relations puts the broader financial market in a state of disarray,” said Yuya Hasegawa, a crypto market analyst at Bitbank in Japan.

Shares have been declining on Wall Street as investors seek refuge in the turmoil caused by the Ukrainian conflict. The price of gold rose to $ 1,907 ounces on Tuesday, the highest for the year. Investors are also flocking to US government bonds, raising Treasury prices while lowering their yields, which are moving in the opposite direction.

“Bitcoin is a very dangerous asset, and the Ukrainian invasion will keep the pressure on crypto trading at 10 to 15 percent in the short term,” said Edward Moya, a major market analyst at Oanda, in a recent report.

On Tuesday afternoon, President Biden announced the new sanctions against Russia for what he called “the Russian invasion of Ukraine,” in response to Russian President Vladimir Putin’s move to send troops to rebel zones in eastern Ukraine. Mr Biden said the sanctions, closely linked to partners and partners, would target Russia’s two largest banks and its private debt.