Over the last few days of February 2022 and with the Russian invasion of Ukraine, early reports around the world caused a rapid, if not predictable, increase in selling all types of assets, including cryptocurrency. The cryptocurrency market was not alone, and stocks and other assets also took a dramatic drop.
However, this early crypto news update was not surprising. The thought of war or unrest with global implications could be expected to cause this type of rapid market change. With a few hours of the announcement on world news media channels, the value of Bitcoin dropped to below $30,000. However, Bitcoin was not the only cryptocurrency mentioned in the crypto news update as Ethereum also dropped to $2400.
The Improvement That Followed
While the initial news was not surprising, the crypto news update that followed within just a few days was more positive than the news facing investors in the stock market.
The value of cryptocurrencies had rallied over the weekends, which was far more positive than early industry analysts predicted. The unpredictability factor is the increasing number of investors in the market that are operating on the traditional pattern of selling off quickly when any potential risks are present in the market. In this way, the cryptocurrency markets are more closely mirroring the stock markets, which is a potential issue to watch for in the future.
The US and other countries continue to apply pressure on Russia through various economic sanctions. This includes the possibility of targeting cryptocurrency exchanges completing transactions with Russian financial institutions, which may result in a further crypto news update about a drop in the value.
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