Cryptocurrencies crush as risk appetite decreases

Cryptocurrency prices surged on Tuesday, amidst reports of Russia – Ukraine tensions easing. On Wednesday, though, the US and NATO cast doubts on Russia’s claims of withdrawing troops and tensions rose again, putting pressure on cryptocurrencies. On the contrary, there are reports that another 7,000 troops have been added to the already sizeable forces of Russian forces near the Ukrainian borders, with the latest tally exceeding 150,000 troops. In addition, the largest cyberattack in the history of Ukraine was launched against two of its banks and its defense ministry, with the Ukrainian side accusing Russia of launching a cyberwar against its institutions. As the crisis in Ukraine might escalate at any time, risk appetite decreases, and investors turn towards safe-haven assets, putting pressure on crypto markets.

The global crackdown on cryptocurrencies was also renewed this week, as the Financial Stability Board, which makes recommendations to the G20 nations on financial rules, advised policymakers on Wednesday to take swift action in drafting legislation covering the digital asset market as there is increasing affinity of crypto markets with traditional markets.

Bitcoin plummeted on Thursday, going almost as low as the key $40,000 level. If its price declines, it may find support at $36,000 and $33,000. Ethereum crashed below the $2,800 level. If its price goes down, it may find support at $2,640 and further support around $2,150. In case its price goes up, it may find resistance at $3,400. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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