The crypto market is facing various uncertainties. The volatility in the market is raising concern among traders. Bitcoin is a risk asset now that is experiencing volatility in the usual course of the market. As a result, the prices are dropping down from their previous close.
The probable reason that this particular fall is occurring right now is because of the Russia-Ukraine tensions. Therefore, traders of bitcoin cannot bear the market.
Despite the higher prices seen on January 24, bitcoin has dropped just about 8.3%. The fall is as low as $38,932.49 at 2308 GMT on Friday. Yet, the world’s biggest and best-known currency is far from a higher dropping price. On the contrary, it hit an all-time high price of up to 18.2% increase in the year 2022. But traders of bitcoin are in a risk-off mood.
Dropping of prices of the Ether
Not only was bitcoin down by 8.3% on Friday, but Ether also dropped 7.87%. According to the reports of U.S. News, Ether, the coin linked to the Ethereum blockchain network, fell to $2,611.38 on the same day. As a result, it lost $223.19 from its previous close.
Since bitcoin has experienced an 8.
9% drawdown on the day, investors are keeping a close watch on the battle between Russia and Ukraine. Economists predict that high market volatility can be witnessed during these hard times. Moreover, it could bring cryptocurrency into the spotlight on the global stage. But the Ukrainians are soliciting crypto donations to raise the value of bitcoin, ether, and other tokens.
In addition to this, the president of the U.S., Biden, requested $10 billion in defense aid as crypto donations to pour into the country. Yesterday, Avalanche and Cardano also chopped down below 6%, while Bitcoin and Dogecoin dropped by 5%. As a result of this, the crypto market cap dropped to $1.83 trillion. According to the experts, rising strikes on Ukraine is not a good sign for Bitcoin and other altcoins.