Is Bitcoin (BTC) Suffering Because of Ukraine?

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The escalation in the Donbass of eastern Ukraine is also affecting the price of Bitcoin.

The fall in the price of BTC

The Last Thursday the price of BTC was around $44,000 and then, partly because of the incessant rumors of a invasion of Ukrainedropped to $40,000 on Friday.

On Sunday it fell again to $38,000 and after yesterday’s statements by the Russian president, Vladimir Putin fell below $37,000.

It is worth mentioning that there is probably no direct impact on the price of Bitcoin by what is happening in eastern Ukrainebut the indirect impact is clear.

The situation in Ukraine

The fact is that it is feared that the armed clash that is now taking place between Russia and Ukraine.

If the confrontation were confined to the disputed Donbass region in eastern Ukrainethe impact on global financial markets could be limited and only temporary.

However, since yesterday there is speculation that the Russian invasion may not be limited to Donbass.

We must distinguish between what is happening in the two self-proclaimed autonomous republics in the Donbass and what is happening in the rest of Ukraine.

Apparently, the Russian army entered the Donbass, i.e. Ukrainian territoryafter the president putin announced that it recognized the two autonomous republics.

This invasion of a territory that Russia no longer consider ukrainian it could be quick and could exhaust its impact on financial markets in a few weeks.

The real concern of the markets

However, what is really causing uncertainty and fear in the markets is another concern: that Russia does not stop in Donbass, but continues with its attempt to conquer all of Ukraine.

The biggest loser so far has been the Moscow stock exchange, which has lost 20% in just two days, returning to a level similar to that of 2006.

However, all other major stock exchanges in the world are also suffering today.

Bitcoin is no exception, while gold, oil and gas are on the rise.

The price of gold, which has returned to its highest level in 12 months, gives a good idea of ​​the fear in global financial markets today, which is unlikely to dissipate any time soon.

However, the fall in the price of BTC in the last two days is not so dramatic as to be much less than that of the Moscow Stock Exchangefor example.

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