Bitcoin Plummets Over 6% Amid Ukraine Crisis Concerns... Fear Intensifies

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Following Russia's recognition of the independence of pro-Russian rebel groups in the Donbas region of Ukraine and its announcement to dispatch troops under the pretext of peacekeeping forces, the cryptocurrency market, a major risk asset, plummeted. Major cryptocurrencies all showed a downward trend, with Bitcoin dropping over 6%.

According to CoinDesk, a leading cryptocurrency media outlet, on the 22nd (local time), the price of Bitcoin was trading at $36,731.10, down 6.31% compared to 24 hours earlier. This is a drop of more than 16% compared to a week ago. Ethereum also fell 8.47% in 24 hours, and Ripple plummeted over 13.41%.

At the domestic exchange Upbit, the closing price on the 21st, released at 9 a.m. on the 22nd, was 45.45 million KRW per Bitcoin, down 3.57% from the previous day, and Ethereum closed at 3.149 million KRW, down 2.14%. On this day, the prices of major cryptocurrencies declined further amid rising tensions over the Ukraine crisis.

Earlier, Russian President Vladimir Putin stated in a national address that "it is necessary to make a decision to recognize the independence and sovereignty of the Donetsk People's Republic (DPR) and the Luhansk People's Republic (LPR)," and immediately signed a bill at the Kremlin recognizing the independence of the DPR and LPR. Subsequently, treaties on friendship, cooperation, and mutual assistance were signed with both entities, and the Russian Ministry of Defense was instructed to dispatch peacekeeping forces to the DPR and LPR regions.

The United States, the European Union (EU), and the North Atlantic Treaty Organization (NATO) opposed this move and announced sanctions against the regions, further escalating military tensions. Major European stock markets also showed declines, with Russia's RTS index plummeting by as much as 13.21%, while Germany's DAX index fell 2.07% and France's CAC40 index dropped 2.04%.

According to CNBC, John Locke, an analyst at 22V Research, said, "As the Ukraine crisis intensifies, there is an increasing flight to safe-haven assets such as gold," and predicted, "Bitcoin could fall below the $30,000 level in the near future."

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