Bitcoin and the main cryptocurrencies on the market have risen moderately, 2,4% on average in the last few hours, recovering part of their value after the fall caused by the outbreak of the conflict between Russia and Ukraine.
This Thursday, the cryptocurrency market lost about 8% of its value, after news broke of the military intervention ordered by Russian President Vladimir Putin in Ukraine. Several markets, including the cryptocurrency market, were affected by the news. However, the price of the main crypto assets in the industry, such as Bitcoin (BTC), Ethereum (ETH), solan (SOL), Cardano (ADA), Terra (MOON FABRIC) y Avalanches (AVAX), begin to rise again.
In the last few hours, the cryptocurrency market has recovered 2,4% of its value. The total capitalization of crypto assets exceeds 1,81 trillions of dollars at the close of this edition.
Bitcoin (BTC), the industry's largest and most important cryptocurrency, is trading at around $38.600 per unit, showing a 4,4% recovery in the last few hours. Ethereum (ETH), Ripple (XRP), Cardano (ADA), Terra (LUNA), Solana (SOL) and Avalanche (AVAX) are in a similar scenario, rising 4,5% on average according to data from the CoinGecko price monitoring platform. The cryptocurrency with the biggest recovery so far is Terra (LUNA), rising more than 10% in the last few hours.
Source: CoinGecko
The correlation of the crypto market with the stock markets and risk aversion have been the main causes of the fall in value experienced by cryptocurrencies. As Bloomberg analysts indicated, so far this year, the cryptocurrency market has lost more than $570.000 billion in capitalization, mainly caused by the expectations of the United States Federal Reserve (FED) to raise interest rates.
Now, the situation seems to have escalated with Russia's invasion of Ukraine, which, contrary to what many thought, has hit the cryptocurrency market this week.
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Almost $600 million liquidated
Liquidations caused by Thursday's fall are close to $600 million, according to the data from CoinGlass. The largest liquidations occurred in Bitcoin, followed by Ethereum, Terra, Solana, The Sandbox, and Gala.
Source: CoinGlass
Cryptocurrency Perspectives
Several crypto community leaders and analysts, including Vitalik Buterin, Anthony Pompiliano, Sam Bankman-Fried, and Will Clemente, have spoken out about the implications of Russia's actions.
Sam Bankman Fried he pointed that the fall in value in cryptocurrencies and traditional stock markets is driven by a shortage of cash, which has led to the sale of assets within these markets. However, he indicated that the destabilization of Eastern European economies could make Bitcoin more attractive as an alternative investment.
On the other hand, Michael Saylor, president of MicroStrategy and a crypto investor, also said that Bitcoin will become more attractive to everyone as the war creates more inflation and begins to paralyze businesses.
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