While there have been significant issues that created rapid and substantial drops in value in cryptocurrencies over the last two decades, there has not been a single large-scale disruptive global issue to test the cryptocurrency market.
With the invasion of Ukraine by Russia, cryptocurrency market news is reporting some potentially important factors to consider for traders and investors in any cryptocurrency market.
The Pattern
One of the interesting and potentially challenging issues reported in cryptocurrency market news is the pattern of cryptocurrencies following the stock markets. This, combined with the volatility of cryptocurrencies, is causing hesitation for both new investors as well as those experienced in trading in the markets.
This movement of the value of Bitcoin and Ethereum, as well as the other major cryptocurrencies with the stock market, is a factor to consider. In the past, advocates of cryptocurrency focused on the independence of the value of these assets compared to traditional investments options, which is not the case since the start of the current military action.
A Natural Reaction or a Reason for Concern?
One of the factors discussed in several articles specializing in cryptocurrency market news is the natural reaction of the larger traders and investors in the market. It is a natural behavior to sell off during stocks during these types of global events due to geopolitical uncertainty. It may be an initial reaction of large and small investors in the crypto markets that will correct as the political situation stabilizes.
Many experts believe the increased use of cryptocurrencies will create a natural movement that is more closely tied to other traditional investments and their movement. If this happens, it will be important to monitor this pattern during the recovery phase.
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