Bitcoin and Ethereum Suffer Worst Loss in Weeks
Since the start of the Ukraine war, Bitcoin and a lot of other cryptocurrencies have been inclining steadily. As Russians and Ukrainians transferred their assets to crypto to save them from devaluing, the price had to rise. However, while cryptocurrencies are still above crucial price points and have a solid bit of steam, there are difficulties. Namely, a lot of governments are pushing to impose control on cryptocurrencies to stop them from circumventing sanctions to Russia. A lot of people in the crypto world see it as another attempt from centralized entities to meddle in cryptocurrencies.
On Friday, Bitcoin dropped by 4% when looking at 24-hour performance. In the crypto world, when Bitcoin falls, other tokens tend to follow its trajectory. As such, Ethereum suffered a similar fate, declining about 3% in the same period. Altcoins are also following, with Cardano sliding 6%, Luna 4%, while Solana is holding fast with just a 0.5% decline. Finally, the meme-coins are also moving in the red, with Dogecoin falling steeper than Bitcoin with 5% and Shiba Inu at 7%.
While the global war and governments trying to regulate crypto once again aren’t helping, it isn’t the primary driver. Instead, it seems that the drop across all cryptocurrencies is a part of investors moving away from risk-sensitive assets. The move started late Thursday and continued into Friday, causing the sweeping drop.
However, some crypto investors see the decline as a resistance test, thus making it good news. As Bitcoin remained above its resistance line of $45,000, some expect a grander rally to follow in the near future. Others, however, aren’t convinced of the argument and are worried that cryptocurrencies are running out of steam instead. As the situation develops, we’ll follow closely in order to present the most accurate and up-to-date financial news.