The reason why Bitcoin and crypto market at large is plummeting after a short-lived surge

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After jumping over 8% on Wednesday, bitcoin fell again, followed by most of the popular cryptocurrencies. Bitcoin has staged a bullish bullish trend over the past week, which saw it rise above $42,000 before the table turned yesterday and pushed it to around $39,000 at the time of writing.

Ethereum, the second largest cryptocurrency by market cap, has hit the nose again and is now trading at around $2,500. The bear market has affected most of the top 100 coins; Most of which were touching the sky for the past few days.

In this article, we are going to look at what is causing the turmoil in the crypto market? Why is it that it crashes whenever it tries to return?

Why Have Bitcoin and Most Coins Dropped Today?

The main contributor to today’s crypto market crash is the ongoing conflict between Russia and Ukraine. The Russian invasion of Ukraine places a heavy burden not only on the stock market but also on digital assets like bitcoin (BTC).

While some analysts, such as Mark Mobius, claim that the conflict in Eastern Europe has helped bitcoin stay strong, the fact remains that the crypto market could suffer a major downturn if the struggle continues. And it’s clear how the market is behaving.

Short-term impact of Biden’s executive order

The fact is that the recent short-term bullish trend was attributed to the much-anticipated executive order by the President of the United States, Joe Biden. Immediately the executive order was signed, leaving the market at the mercy of brutal bear forces due to the Russo-Ukraine War it took only hours for the effects of the news to fade.

The threat of a war escalating further is putting the cryptocurrency market at risk as investors are either withdrawing their money altogether or taking a break from buying risk-based assets like bitcoin out of fear that the asset will crash.

Berkshire Hathaway’s Warren Buffett Warns It’s Not Wise invest in bitcoin War times and most investors appear to be buying advice. There are also uncertainties about the future of the ongoing conflict, with the majority asking themselves what will happen to countries such as the US, Britain, Germany, France and China if Russia intensifies attacks.

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