Cryptocurrency Market Drops, Partially Recovers Following Russian Invasion of Ukraine

Bitcoin and other cryptocurrency prices plummeted after Russia attacked Ukraine on Wednesday, but have partially recovered. Bitcoin was down as much as 8 percent following Russia’s invasion, but by Thursday afternoon had recovered much of the drop.

CNBC reports that Bitcoin fell to a one-month low on Thursday morning with other cryptocurrencies also falling in price. The considerable drop in price is likely linked to the sharp decline in equity markets after Russia launched an attack on Ukraine.

(Photo by Dan Kitwood/Getty Images)

Armed men believed to be Russian military stand outside a Ukrainian military base on March 12, 2014 in Simferopol, Ukraine. As the standoff between the Russian military and Ukrainian forces continues in Ukraine’s Crimean peninsula, world leaders are pushing for a diplomatic solution to the escalating situation. Crimean citizens will vote in a referendum on 16 March on whether to become part of the Russian federation. (Photo by Dan Kitwood/Getty Images)

Bitcoin reached a new monthly low earlier on Thursday morning dropping by 8 percent to $34,702.18. Ether also saw a major drop by 5.99 percent to $2,434.88 USD as of the same time. As of Thursday afternoon, a large portion of the drop had already been recovered — Bitcoin reached $36,646.76, an overall drop of 2 percent.

The drop in crypto value comes as global equity markets begin to freefall following the news that Russia has launched a military attack on Ukraine.

Generally, cryptocurrency prices move in relation to the movement of other risk assets such as stocks. Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, commented: “Risk assets continue to be weighed down by the Russia-Ukraine conflict and tensions. This includes Bitcoin and cryptocurrencies which are currently still very much viewed as a high-risk asset class.”