Bitcoin battered as Russia mounts ‘full-scale invasion’ of Ukraine

Bitcoin and Ethereum slumped after the Ukranian foreign minister said Russia had launched “a full- scale invasion” of the country amid reports of tanks and troops rolling across the border and cruise missile strikes on major cities including the capital Kyiv.

Bitcoin tumbled over 4.53% to US$35,578, its lowest point in more than a month, while smaller peer Ethereum slumped 13.56% to US$2,308 – both flirting with key support levels.

Equity markets fell, gold spiked and brent broke through the $100 mark after Russian President Vladimir Putin declared parts of Ukraine must be purged of corruption, cells of extremists, and the threat of nuclear weapons being pointed “only in a matter of time” at Moscow, the Guardian reported.

“Whoever tries to stand in our way or create threats for our country and people should know Russia’s response will be immediate and lead you to consequences you have never encountered in your history,” Putin was quoted as saying.

“Cryptocurrency prices, like the broader financial markets, are likely to be volatile in the coming weeks, influenced heavily by events related to the Russia-Ukraine conflict,” said Naeem Aslam, a market analyst at avatrade.

Markets are braced for an escalation in sanctions against Russia and allies of Putin after the US led its NATO allies in targeting key financial institutions and policy makers at the start of the week.

Impending interest hikes by the US Federal Reserve in March is also “expected to put downward pressure on bitcoin prices.”

“This is because hawkish monetary policy would raise the cost of capital, removing liquidity from markets that have supported risky assets since the coronavirus pandemic began,” Aslam added.

Solana was down 11.12% to US$79.47, Terra 8.59% lower at US$51.44 and Avalanche slumped 15.08% to US$66.04..