The prices of major virtual assets, including bitcoin, fell all at once compared to the previous week. The Russian invasion of Ukraine shook up the global stock market as well as the virtual asset market. However, after the invasion, virtual asset prices successfully rebounded, recovering much of the decline, and riding a roller coaster. In particular, the Bitcoin price has been rising for three days in a row since the 24th.
Bitcoin on a rollercoaster ride turns bullish
According to Upbit, a virtual asset exchange, as of 9 am on the 26th, bitcoin was traded at 47,894,000 won, down 2.04% from the same time last week. Bitcoin price has been bearish since last week on the threat of a Russian invasion of Ukraine.
On the 17th, Russian media reported that Ukrainian forces had opened fire on the Lugansk region, where pro-Russian rebels are stationed, raising concerns about a Russian invasion of Ukraine. The Ukrainian government, on the other hand, denied the attack and claimed that it was attacked. On the same day, US President Joe Biden said it was likely that Russia would invade Ukraine in the next few days.
In the midst of this growing sense of crisis, on the 22nd (local time), according to foreign media, Russian President Vladimir Putin ordered a Russian peacekeeping force to enter the disputed Donbas region in eastern Ukraine. As a result, on the 22nd, the price of Bitcoin collapsed around 45 million won.
In particular, on the 24th, when Russia’s missile attack began, the price of Bitcoin was pushed back to 42 million won. However, the global stock market and virtual asset market, which had fallen since the fears became a reality, rebounded. The industry believes that the price has recovered due to expectations that the number of rate hikes by the US Federal Reserve (Fed) may be reduced or delayed in response to Russia’s invasion of Ukraine. In addition, the rise in the US stock market seems to have played a part in the recovery of virtual asset prices.
The three major U.S. stock indexes closed higher on the 24th (local time). The Dow rose 0.28%, the S&P 500 rose 1.43%, and the Nasdaq rose 3.34%.
Also on the 25th (local time), major US stock markets are showing an upward trend. The fear of war seems to have somewhat diminished as Russia has expressed its willingness to negotiate with Ukraine.
Ethereum, Ripple, swayed by global issues… a successful rebound
Like Bitcoin, Ethereum and Ripple have been swayed by global issues for a week. Ethereum was traded at 3382,000 won per unit, down 0.76% from the same time last week. Most of the declines this week have been recovered. However, according to Glassnode Data, a virtual asset data analysis company, the income of miners on the Ethereum network was $202,766.09, the lowest level in 18 months. The previous low was October 18, 2020 ($22757.87).
In addition, according to foreign media on the 25th (local time), ‘FLexpool’, the world’s fifth largest Ethereum mining pool, is considering suspending services for Russian users due to the Ukraine crisis. Among major mining pools, Flex Pool is the first to consider suspension of services for Russian users.
“We don’t get involved in politics,” a Flexful spokesperson said. “But this goes beyond politics and is a war that can end the lives of innocent people.” “We will stop providing all services to Russian IP addresses and pay the outstanding balance to them,” it said.
Ripple also traded at 942 won per unit, down 1.97% from the same time last week. In particular, Ripple’s price fell despite the analysis that Ripple Labs is in an advantageous situation in a lawsuit with the US Securities and Exchange Commission (SEC).
In a lawsuit between Ripple Labs and the SEC on the 23rd (local time), John Deaton, a lawyer representing the interests of Ripple holders (holders), predicted through Twitter that Ripple Labs would prevail. “The SEC must prove that the defendants, Ripple co-founder Chris Larson and Ripple Labs CEO Brad Garlinghouse, either knew or did not know that Ripple was a security, but were reckless,” he said. “This lawsuit is over,” he said.
In addition, ‘Clay’, a virtual asset issued by Ground X, a Kakao affiliate, was traded at 1,490 won per piece, down 2.48% from the same time last week. The virtual asset ‘Link’ issued by Line, an affiliate of Naver, was traded at $121 per piece, down 3.2% from the same time last week.
Reporter Lee Seong-woo voiceactor@techm.kr
