War only brings misery for the countries, economies, people, work, and now cryptocurrencies. It was quite inevitable considering the hot reactions that Russia displayed to its neighbouring country Ukraine. Is it the end of cryptocurrency? How has the war reshaped the entire Bitcoin’s Blockchain in the affected countries as well as the countries adjacent to them?
The recent signs of dwindling crypto prices do not show any promising signs of improvement in crypto. But what caused such a violent war between these two countries that plunged such digital assets into a state of sheer agony. Traders all around the world kept hoping for a piece of positive news to come out of the crypto domain, but nothing really worked out at the end as the world witnessed the collapse of crypto.
Recently, bitcoin was being traded below the normal prices, and it came down to a mere $40,000. Moreover, such a haphazard fall in the prices also took Ether into its radar which fell to almost 9.4%, which was the direct result of the escalation of war between the countries. The situation does not seem to get any better, especially after several western nations began to impose completely new sanctions on Russia but to no avail.
The tyrannical country did not want to relinquish the attacks and kept the onslaught alive through to the end, which is still in action at the time of writing this article. It will take you through some of the dire situations that the cryptocurrency ecosystem is yet to face.
Russia under the crosshairs of western countries
Needless to say that Bitcoin is the largest digital asset that anyone can own in the current times. However, its pristine market value suffered a severe onslaught of war that tainted its dominance manifolds. The overall prices of bitcoin fell by 5%, and it came down to $37,450 in the New Stock crypto exchange. Now, that is a serious fall that was not being anticipated, but it happened in a blink of an eye that gave no room to traders to fathom the impact.
On the other hand, Ether also tumbled down like a house of cards, and it eventually came down to the $2,600 mark. A pool of sanctions was being imposed on Russia right after it decided to attack Ukraine, and some of the predominant Russian banks were also effectively excluded from the famous messaging system known as “SWIFT.” The move was made by the western nations to target the Russian central bank and its international reserve.
A looming threat
The war escalated quickly, and U.S. citizens were being advised by the USA to leave Russia with immediate effect. This came right after Putin decided to mobilize Russia’s nuclear forces. It also impacted the overall crypto prices around the world, and its relevance declined faster than anyone could have ever imagined. Miners across the affected countries bore the significant brunt of the war as they were technically left with no option but to abandon trading and save their lives. Other miners also resorted to relocating their entire apparatus to a new location in order to steer clear of the war frenzy.
It needs to be noted that conflict zones are proliferating as the situation continues to escalate in both countries. Miners even had to shut down their routine activities, and they didn’t get enough time to relocate as the war situation grew intense within a matter of hours.
It was quite inevitable for war to occur between Russia & Ukraine and telltale signs of it were also evident in the geopolitical scenario. However, analysts had already predicted the grim signs months before the war actually broke out between both countries. Needless to say, it affected the crypto industry on significant fronts, and the loss is too debilitating to be estimated at this point in time.
It is also expected to get even worse as the situation has not been alleviated in both the countries. It begs the question that how long the entire apparatus of cryptocurrency can sustain and what does its future entail? It is only a matter of time when such questions will be answered just by the looks of it.