The cryptocurrency market remained bearish for the seventh consecutive day amid heightened geopolitical risks, with market capitalisation falling 3.3 percent to $1.77 trillion. As of 1130 hours GMT on Tuesday, the largest cryptocurrency Bitcoin’s (BTC) price shed 1.96 percent to reach $37,590. With this decrease in price, the market capitalisation of the biggest crypto has reached $712 billion. Bitcoin shed 11.6 percent during the last seven days. Bitcoin has faced a double whammy of the US Federal Reserve rate hike fears and lingering Russia-Ukraine tensions in recent weeks.
Ether, the world’s second-largest cryptocurrency by market capitalisation, shed 3.55 percent to reach $2,589. With this decrease in price, the market capitalisation of ETH has reached $304.7 billion. Ether has shed 11.6 percent of its value over the last seven days. Similarly, XRP price went 10.06 percent down to reach $0.703. The market capitalisation of XRP stands at $70.3 billion with this decrease. XRP has shed 12.1 percent during the last seven days. On the other hand, Cardano (ADA) price decreased by 8.47 percent to reach $0.865. Its market capitalisation has reached $28.5 billion with this decrease. ADA shed 17.7 percent in the past seven days.
Following suit, Dogecoin (DOGE) price slipped 5.95 percent to reach $0.130. With this decrease in price, the market capitalisation of DOGE has reached $17.2 billion. DOGE has shed 11 percent during the last seven days.
The experts are of the view that the geopolitical situation in Europe and Ukraine is having a material impact on cryptos. They said that large moves down in stocks, or disorderly spikes in crude and bond yields, could lead to exaggerated declines for cryptocurrencies. They said that in a tense situation, investors prioritise commodities such as gold and crude oil rather than riskier stocks and cryptos.
Meanwhile, US President Joe Biden is expected to issue an executive order on cryptocurrency this week, which will direct a wide range of government agencies to study cryptocurrency and central bank digital currency (CBDC), produce a report on the future of money and payment systems, and come up with a government-wide strategy to regulate crypto assets. The executive order will also examine consumer, business, and investor protection measures. Other issues it will address include stablecoins, privacy, and distributed ledger technology (DLT).