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Bitcoin Slides To Six-Month Low Over Fears Of Russian Attack On Ukraine

Bitcoin Slides To Six-Month Low Over Fears Of Russian Attack On Ukraine
With worries of a Russian attack on Ukraine prompting risky assets throughout the world to sell off, the largest cryptocurrency in the world – bitcoin, fell more than 7 per cent to its lowest value in more than six months on Monday.
The largest cryptocurrency is down 7.4 per cent at $33,650, which was its lowest price value since July 24 last year. The crypto asset has lost almost 50 per cent of its value from its all-time high of $69,000 which it had achieved in November last year.
In one of the clearest indicators yet that American authorities are ready for aggressive Russian intervention in the Ukrainian region, the US State Department stated on Sunday that diplomats' families must leave Ukraine with immediate effect.
Worries of a conflict also slashed almost all the stock markets around the world which resulted in further strengthening of the US dollar and the prices of oil.
High levels of uncertainty about what would conspire at the US Federal Reserve's two-day meeting, which begins on Tuesday, contributed to the conditions and worries witnessed in the market on Monday. According to market analysts and experts, the US central bank is likely to announce that it will soon begin draining the pool of liquidity that has fuelled growth stocks.
Smaller cryptocurrencies, which tend to move in lockstep with bitcoin, have also fallen in value with the fall in the value of bitcoin. Ether, the second largest cryptocurrency in the world, plummeted by about 11 per cent to $2,253 on Monday, which was its lowest level since July, 28 last year.
"Bitcoin will face headwinds going back up until the macroeconomic conditions change," said Mark Elenowitz, president of Horizon, a firm that services securities exchanges.
"Generally speaking, when rates are hiked, we could see more selloffs of seemingly risk-on assets like bitcoin."
Riot Blockchain, Marathon Digital, and Bit Digital, all of which are publicly traded in the United States, fell between 7.3 and 12 per cent in premarket trading, while crypto exchange Coinbase Global fell by 7.8 per cent.

Christopher J. Mitchell

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