How War is Influencing the Crypto Currency Market

[Jasmine]

War comes with a lot of financial costs.

Even when the war stops now, it will take many years for the countries at war to regain their economy. However, during this war time, cryptocurrencies are keeping the economy of these countries afloat.

When the war started, the price of Bitcoin and all other cryptocurrencies went down, however, now the price is improving. Do you know why? That’s because due to sanction, Russians have not been able to sell their Oils for USD, and now they are using Bitcoin to sell their Oil, which has resulted in the improvement of Bitcoin price and crypto market in general. Another reason for the increment in the cryptocurrency price is because Ukraine is receiving a lot of donations in cryptocurrencies as their banking system is at disarray due to the war.

A couple of weeks before the war started Russian government proposed a ban on Bitcoin and all other cryptocurrencies including mining, investing, and trading, which resulted in the drop in the cryptocurrency price. However, cryptocurrency market is improving because the war has created a favorable market.

The common Ukrainians who do not have access to the banks due to the war are receiving funds in crypto from their relatives and well wishers in other countries. The Ukraine government has even started using Bitcoin as a legal tender.

 

[Mika]

Share market moves up and down according to the companies' performance in the market (turnover, sales, revenue, etc.), real estate market depends on factors like demand for properties, mortgage interest rates, etc. However, you cannot really say what moves the prices of cryptocurrencies. Even though it is believed that demand and supply move the price up and down, there are various factors involved. In 2021, Bitcoin price and all other altcoins were going up, then one day Elon Musk suddenly said he will not accept Bitcoin for Tesla because he manufactures gree cars and Bitcoin uses coal to mine. This led to the drop in the price, then China declared war on Cryptocurrency banning all operations including buying, selling, mining, trading, which led to the crash in the market. Cryptocurrency market is very volatile. It can go up with just one good news and it can drastically fall down just due to one bad news. Before the beginning of the way, when Russia proposed ban, the price began to fall, and during the way when cryptos were beig used to send money to Ukraine, and Russia started sellig gas for Bitcoin, the price began to improve. Currently, the ;price has slightly dropped.