[Bitcoin Now] Increased Risk of Military Conflict in Ukraine... Sharp Drop in Trading Volume

by Lee Jungyun

Published 13 Feb.2022 14:07(KST)

Updated 06 Mar.2023 18:24(KST)

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Amid unresolved conflicts between Russia and Ukraine, the price of the leading cryptocurrency Bitcoin remained around 51.0 million KRW.

According to the domestic cryptocurrency exchange Upbit, as of 1:25 PM on the 13th, the price of Bitcoin was trading at 51.69 million KRW, up 0.19% (97,000 KRW) compared to the previous day.

Bitcoin prices, which had recorded the 53 million KRW range until mid-last week, fell to 51.88 million KRW on the 11th, down 2.34% (1.241 million KRW) from the previous day. The main reason for the drop in Bitcoin prices is attributed to the decline in the Nasdaq index, which is tech-stock centered, amid growing concerns over the possibility of a Russian invasion of Ukraine. Bitcoin has recently shown synchronization with the Nasdaq index, which closed down 394.49 points (2.78%) at 13,791.15 on the 11th (local time). Additionally, ongoing concerns about the U.S. Federal Reserve's tightening since January have also influenced the decline.

The conflict between Russia and Ukraine remains without a resolution. The current situation was triggered by Russia’s opposition to Ukraine’s membership in the North Atlantic Treaty Organization (NATO) and demands for NATO to halt its eastward expansion. U.S. President Joe Biden and Russian President Vladimir Putin held a 62-minute phone call on the 12th (local time) to discuss the issue, but no visible progress was reported.

Due to these negative factors, Bitcoin trading volume is also decreasing. According to the cryptocurrency market data site CoinMarketCap, as of 1:50 PM on the same day, the 24-hour Bitcoin trading volume was recorded at 21.2541 trillion KRW, a 28.15% decrease compared to the previous day.