How come Bitcoin and other cryptocurrencies keep tumbling further and further down in price? It might just be the events around the globe causing this dip. In this essay, I will outline the reasons why cryptocurrency and other assets are plummeting rapidly.
Russia And Ukraine War
After Vladimir Putin announced a military operation in Ukraine, the price of bitcoin fell below $35,000. That’s a decline of more than 8% compared to a day earlier. CNN wrote, “The currency has lost almost half its value since its November high of $68,990 due to geopolitical tensions, the prospect of interest rate hikes by the US Federal Reserve, and curbs by some major economies on digital assets.” Fears of tighter monetary policy from the Federal Reserve, a military conflict in Russia, and simply being on the wrong side of the market, had stoked panic in the stock market early Monday. Then, investors bought the dip. The S&P 500 rose 0.3% after falling nearly 4% at one point during the day. It seems like every asset is falling right now, besides 1.
NFT’s
The NFT space is booming right now, in January NFTs had an all-time high of $7 billion dollars in sales. That’s a massive industry. Currently, I bought the dip in assets like Ethereum and Polygon for this reason. I even dabbled some of my money in NFTs. I think with the current market and metaverse plans, NFTs are here to stay.
Joe Biden’s Stance
“The world will hold Russia accountable,” Biden said on Twitter. “President Putin’s actions demand a firm response. That’s why we’re imposing full blocking sanctions on VEB and Russia’s military bank, cutting off Russia from western financing, imposing sanctions on elites, and more,” Biden stated in another tweet that “Russia alone is responsible for the death and destruction this attack will bring, and the United States and its Allies and partners will respond in a united and decisive way,” According to Fox News, “The prayers of the entire world are with the people of Ukraine tonight as they suffer an unprovoked and unjustified attack by Russian military forces,” Biden said via the White House.
Conclusion
I believe that though cryptocurrency and other assets are down right now, they will always bounce back. I took it as if those assets were at a “discount”. Assets fluctuate anyway, it's normal. Take this as an opportunity to get the best stocks, cryptocurrency, and even NFTs you believe in. Thank you so much for reading! If you enjoyed, please leave a clap and comment on your thoughts on the topic. Have a great day my friend.
