The cryptocurrency market crashed on Thursday, with market capitalisation losing 11.4 percent to reach $1.65 trillion, as the aggravation of tension around Ukraine exerted pressure on risky assets.
As of 1315 hours GMT, the largest cryptocurrency Bitcoin’s (BTC) price shed 9.86 percent to reach $35,307. With this massive decrease in price, the market capitalisation of the biggest crypto has reached $668.6 billion. Bitcoin shed 19.8 percent during the last seven days.
Ether, the world’s second-largest cryptocurrency by market capitalisation, fell 14.07 percent to reach $2,363. With this decrease in price, the market capitalisation of ETH has reached $278 billion. Ether has shed 24.5 percent of its value over the last seven days.
Similarly, XRP price went 14.28 percent down to reach $0.637. The market capitalisation of XRP stands at $63.6 billion with this decrease. XRP has shed 23.9 percent during the last seven days.
On the other hand, Cardano (ADA) price went 19.63 percent down to reach $0.762. Its market capitalisation has reached $25 billion with this decrease. ADA shed 29.8 percent in the past seven days.
Following suit, Dogecoin (DOGE) price slipped by 17.93 percent to reach $0.111. With this decrease in price, the market capitalisation of DOGE has reached $14.8 billion. DOGE has shed 25.4 percent during the last seven days.
The cryptocurrencies slid as Russia launched a special military operation against Ukraine. The prospect of damage to the global economy also weighed on broader financial markets.
There are growing risks of escalation associated with the introduction of Russian troops into Donbass. In such a situation, risky assets may continue to decline further.
The slide in cryptocurrencies shows the sector remains a nascent asset class compared with traditional markets. The cryptocurrencies witnessed a strong selling pressure as compared to developed world stocks, confirming the risky nature of these assets and how they are not a replacement for gold.