Russia-Ukraine conflict weighs on global risk assets, Bitcoin and Ethereum fall

Time：2022-02-27 Source： 1165 views Policy Copy share

Further escalation of tensions between Russia and Ukraine weighed on global risk assets. As of press time, Bitcoin fell 2.95% to $38,192.13/piece, falling below $40,000/piece; Ethereum once fell below $2,600/piece, and is currently down 4.85% to $2,672.54/piece.

With Bitcoin’s correlation with the stock market near an all-time high, Bitcoin’s decline means U.S. stocks will open lower, or at least moderate volatility, on Monday.

Russia-Ukraine conflict weighs on global risk assets, Bitcoin and Ethereum fall

Western countries have imposed a series of sanctions on Russia. On February 27, the United States, the European Union and the United Kingdom issued a joint statement on sanctions against Russia, promising to disable the SWIFT system for selected Russian banks and to impose sanctions on the Russian central bank’s foreign exchange reserves.

However, Bitcoin is still well above its Jan. 24 low of $32,970. JPMorgan strategist Nikolaos Panigirtzoglou said it was this low that pushed Bitcoin into oversold territory. On Friday, cryptocurrency investment firm Grayscale Investments said any rise in cryptocurrency prices in the face of a “bad news event” would indicate “seller exhaustion in the current crisis.”

Technical indicators also look bullish, and a "constructive rebound" could push bitcoin to the $50,000-$55,000 level, said Rick Bensignor, president of Bensignor Investment Strategies and a former strategist at Morgan Stanley.

Russia-Ukraine conflict weighs on global risk assets, Bitcoin and Ethereum fall

Additionally, Bitcoin hashrate appears to have been hit by the Russian-Ukrainian conflict. According to Blockchain data, the total computing power on Saturday was about 173.8 million TH/s per second, down from a record 248.1 million TH/s on February 12. Hayden Hughes, CEO of trading social media platform Alpha Impact, noted that this is because many miners in Ukraine and Russia have been affected by the conflict and some mining infrastructure has been shut down.

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