Bitcoin fell this week due to escalating tensions, and news of Russian troops mobilizing into Ukraine.
Over the weekend, the coin’s value dropped to below $40,000 and then fell 6.5% between Monday morning and Tuesday morning according to a report from CNN.
At Wednesday afternoon, had a value of $38,031, a decrease of 13.72% over the week before and almost $30,000 lower than its November 2021 all-time high.
Russia’s President Vladimir Putin’s decision to start mobilizing troops in two parts of eastern Ukraine that were independent to help “keep the peace” has prompted other European countries as well as the U.S. to impose additional sanctions if Russia escalates its military actions.
Linda Thomas-Greenfield (U.S.) stated that ‘Tomorrow the United States will impose Sanctions on Russia for this clear violation international law and Ukraine sovereignty, and territorial integrity.’ Following a U.N. Security Council meeting Monday, the Ambassador to the United Nations stated that according Reuters.
Markets have been swept by the impending action, particularly in crypto’s volatile world.
Russia has had a long history of a contentious relationship to crypto and its inability to properly regulate global markets.
It was reported last month that the Central Bank of Russia had suggested a complete ban of crypto. In Russia, there are already bans on crypto payments and investments for mutual funds.
The Russian Ministry of Finance tried to pass a bill in parliament on February 18 that would regulate cryptocurrency (from mining, distribution, and spending). However, it is important to remember that the Bank of Russia still calls for a complete ban of the industry.
An separate report from November last year shows that Russians engage in approximately $5 billion worth of crypto transactions annually.
As of Tuesday afternoon, Bitcoin had climbed to around 2.82% daily.