Here’s our two cents on the crypto market in the aftermath of Russia’s invasion of Ukraine, as well as recommendations for crypto investors.
How does it affect crypto prices?
The global trading volume fell by nearly 191% in just less than 24 hours after Russia launched its first attack. The general price level also dropped by 10%.
The world’s most popular cryptocurrency, Bitcoin, fell by over 8% to $32,000. Ethereum, the second-largest cryptocurrency by market capitalization, dropped by over 10% to $2,300.
Why did this happen?
It’s the same reason why stock markets react badly during a crisis. Fear makes people sell their crypto.
Is it likely to continue?
The crypto market is no different from other forms of financial investments. The situation will continue to have impacts on the crypto market for the next few weeks, just as it will have impacts on other significant equities in other financial markets.
Should investors move to stable coins in the meantime?
Despite the fall in some major coins, stable coins have shown almost minute change since this crisis started. Some crypto experts believe investments, for now, should be in stable coins like USDT which are less volatile.
What should be your crypto strategy?
Observe, do not panic, think long term and stay invested. Don’t make crypto decisions without thinking it through. Your decisions should not be out of fear. This is what experts are advising.
Invest only in those assets that will hold value even after the crisis passes.
Investors who buy during market dips see significantly higher returns than those who invest during optimistic periods. So, if you have the risk appetite and financial means, now may be a great time to invest in crypto.