Bitcoin prices plummeted on Thursday as global geopolitical tensions escalated to unprecedented levels. On Thursday, there was no agreement reached to end the war during the second round of negotiations between Russian and Ukrainian officials. In response to the impasse, markets were jittery, which pushed prices of conventional safe-haven assets up such as gold and the US dollar. Before the Russian invasion, Bitcoin moved in a manner comparable to that of other risky assets such as technology stocks. Related Article | Criminal Whales Hold $25 Billion In Crypto Assets: Chainalysis Report Investors anticipate that the United States Federal Reserve will begin raising interest rates in response to rising inflation in the near future. Money is being transferred from riskier assets like bitcoin to stocks of banks and other corporations that perform well when interest rates increase. Bitcoin Prices Vulnerability, Investor Worry A change in the landscape has made Bitcoin vulnerable to stock market volatility in the US. As a result, the current geopolitical climate will worry Bitcoin investors. They will remain restless until the situation between Russia and Ukraine is resolved. Because of the present circumstances, Bitcoin is already down 10% for the year and roughly 38% from its all-time high achieved in November 2021. As long as tensions between Russia and Ukraine continue to worsen, cryptocurrency miners should keep their fing...
