There have been ripple effects across all industries due to tensions between Russia and Ukraine. As we get closer to de-escalation Russia announced that it will be redeploying some troops from the Ukrainian border to their bases. Even though it comes with some uncertainty, this news seems to have given enough impetus for investors, which has in turn had an impact on cryptocurrency prices.
As their prices fluctuate, cryptocurrencies have been volatile on the market recently.
However, this recent development is positive news for crypto-world as Bitcoin, the most widely used cryptocurrency, crossed the $44,000 mark for its first time since last week.
Although its price fell to $41,928.19 yesterday, it is currently trading at $44,135 – a far lower amount than the $69000 record it set last November , It is down about 6% so far this year and 35% from its peak. Expect more short-term price increases.
It may reach the $45,000 mark if things go according to plan.
Not only has Bitcoin seen a rebound, but so did Ethereum. Ethereum, another popular cryptocurrency, has moved up from its previous low of $2867.31. It rose almost 7% to surpass the $3000 mark. Today, it traded at $3118.59 and hit an intraday peak of $3115.69. DeFi’s favorite Aave rose around 7% while Dogecoin rose $0.15 (a 2.79%) increase). Polygon’s price increased by 9.63% to $1.79.
Mudrex CEO and co-founder Edul Patel believes that recent volatility could be due to a wider market selloff. The market is oscillating between highs and lows because of the fear surrounding a hawkish Federal Reserve. The tensions in Ukraine could spark market movements in the next few weeks.