In a move that seemed to catch markets by surprise, reports were flowing in of a feared three-pronged attack on Ukraine at the time of writing, with the West already promising more severe sanctions as a result.
Bitcoin, already trading in line with stocks instead of acting as a safe haven, thus showed uncertainty of its own, declining over 12.2% from Wednesday’s local highs to hit $34,300.
Asian stocks were already feeling the pressure, with Hong Kong’s Hang Seng index down 3.5% and the Nikkei reaching a 15-month low.
As traders waited to see the full impact on European and United States stock markets, Bitcoin market participants took stock of what the geopolitical events could mean for the largest cryptocurrency.
“So there are arguments both ways for what should be happening to BTC right now. I’m not really sure I would have guessed it would go down based on the fundamentals. But it is down, a lot! Why?” Sam Bankman-Fried, CEO of trading giant FTX, queried in a series of tweets Thursday.