Russia-Ukraine tension – the cryptocurrency market lost 11% in the last 24 hours. As the situation develops, investors from Europe and America are joining the trade. The focus of the shift shifts from Bitcoin to Altcoins. At the time of writing, the losses of the former cryptocurrency are up to 10%, while ETH and XRP have dropped by 13-14%. Avalanche, Cardano, Dogecoin have even more significant losses, with a decrease of more than 17% in total.
Currently, the markets have the most significant demand for liquid instruments, which puts Bitcoin at a slightly lower risk than Altcoins. Further deterioration in financial condition could likely benefit the first cryptocurrency; As a means of saving capital for investors from Ukraine, Russia, and some nearby countries.
At the same time, fleeing from risky assets, including stocks, can temporarily destabilize altcoins. Therefore, double-digit losses may appear in Altcoins in the coming days. When the dust settles, prices can be attractive for long-term investments; However, now the risks are exaggerated.
Crypto and Russia-Ukraine Tension
According to Glassnode, long-term investor wallets hold a record volume of BTC, totaling 76.5%. The importance of bitcoins that have been motionless for more than ten years also increases by 12.6%. Thus, almost 90% of all existing coins are not from the market.
Now any country other than El Salvador can accept Bitcoin as a means of payment. Indira Kempis, the Senator, is working on a bill on cryptocurrencies. Accordingly, it intends to persuade the Mexican government to follow El Salvador’s scenario by recognizing it as a means of paying BTC. A former SEC official, Joseph Hall, called the department’s chances to lose in court against Ripple. The regulator alleges the firm of selling unregistered securities under the guise of XRP tokens.
It is still unknown whether Mexico will legalize the most popular digital currency shortly. If that happens, Mexico will become the second country in the world to make Bitcoin legal across the country.
