After jumping by over 8% on Wednesday, Bitcoin has fallen again followed by a majority of popular cryptocurrencies. Bitcoin has staged a spirited bullish trend in the past week or so that had seen it rise above $42,000 by yesterday before the tables turned and pushed it to around $39,000 at the time of writing.
Ethereum, the second-largest cryptocurrency by market cap, has followed suit by nose-diving again and it is now trading at around $2,500. The bear market has affected the majority of the top 100 coins; most of which were skyrocketing for the past few days.
In this article, we are going to look at what is causing the rough tides within the crypto market? Why is it that it is crashing every time it tries to make a comeback?
Why has Bitcoin and the majority of coins fallen today?
The main contributor to today’s crypto market crash is the ongoing conflict between Russia and Ukraine. The Russian invasion of Ukraine appears to only bear a heavy burden on the stock market but also on digital assets like bitcoin (BTC).
While some analysts like Mark Mobius claim that the conflict in Eastern Europe has most likely helped bitcoin stay strong, the fact is that the crypto market could be heading for a major drop if the conflict continues. And it is evident from how the market has been behaving.
Short-lived effect of Biden’s executive order
The fact is that the recent short-lived bullish trend was attributed to the much anticipated executive order by the president of the United States Joe Biden. Immediately the executive order was signed it only took a few hours for the effect of the news to fade away leaving the market at the mercy of the ruthless bear forces caused by the Russia-Ukraine war.
The threat of the war becoming bigger is threatening the crypto market further since investors are either pulling out their money completely or taking a break from buying risk-based assets like bitcoin for fear that the assets will crash.
Berkshire Hathaway’s Warren Buffett warned that it is not wise to buy bitcoin during times of war and a majority of investors appear to be buying the advice. There are also uncertainties surrounding the future of the ongoing conflict with the majority asking themselves what position nations like the US, the UK, Germany, France, and China will take if Russia intensifies the attacks.