[Bitcoin Now] Decline Amid Escalating Ukraine Crisis... Altcoins Also 'Plunge'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the Ukraine crisis worsens, the price of Bitcoin, the representative cryptocurrency, is showing a downward trend.

According to the domestic cryptocurrency exchange Upbit, as of 9:40 a.m. on the 21st, the price of Bitcoin is trading at 47.06 million KRW, down 0.15% (69,000 KRW) from the previous day. The price of Bitcoin fell to 46.7 million KRW around 6 p.m. the previous day, which is the lowest price in 18 days since recording 45.83 million KRW on the 3rd of this month.

The price of Bitcoin is plummeting as the war crisis between Russia and Ukraine escalates. On the 20th (local time), Russia and Belarus decided to extend their joint military exercises due to ongoing tensions in the Donbas region of eastern Ukraine. Viktor Khrenin, Belarus’ Minister of Defense, explained, "As military activities (by the West) near the Union State border have increased and the situation in the Donbas region has worsened, the presidents of Russia and Belarus decided to continue the Union State response inspection exercises." The 30,000-strong Russian troops have been conducting joint exercises since the 10th of this month in southwestern Belarus near the border with Ukraine.

U.S. Secretary of State Antony Blinken also mentioned the extension of the joint military exercises between Russia and Belarus in an interview with CNN, saying it is "just before an invasion becomes a reality." CNN also reported, citing U.S. officials, that three-quarters of Russia’s main combat units have been deployed targeting Ukraine.

Altcoins also showed a downward trend. As of 7:45 a.m. on the same day, Ethereum was trading at 3.22 million KRW on Upbit, down 4.91% from the previous day. Sandbox and Ripple fell by 7.82% and 4.58%, respectively, recording 3,950 KRW and 959 KRW.

Investor sentiment is increasingly freezing amid the decline in cryptocurrency prices. The day before, Dunamu, the operator of Upbit, recorded a digital asset fear and greed index of 32.55, indicating a 'fear' stage. Compared to 38.83 on the 19th and 43.91 (neutral) on the 13th of this month, it dropped by 6.28 and 11.36, respectively. Dunamu’s digital asset fear and greed index is divided into ‘Extreme Fear (0?20)’, ‘Fear (20?40)’, ‘Neutral (40?60)’, ‘Greed (60?80)’, and ‘Extreme Greed (80?100)’. The greed direction indicates increased interest in buying by market participants, whereas moving toward fear means a chain reaction of price declines as investors flee the market due to fear of asset depreciation.

This content was produced with the assistance of AI translation services.