As the Ukraine conflict worsened, Western nations imposed further sanctions against Russia when President Vladimir Putin refused to stop attacking its neighbor. As a result, Bitcoin fell below US$40,000 (about RM168,012), while Ether fell as much as 9.4%.
As of 4.40 p.m. in New York, Bitcoin, the most valuable cryptocurrency by market capitalization, had fallen by nearly 5% to around US$37,450, while Ether had fallen below US$2,600.
The cryptocurrency market sell-off came after a global stock market surge that saw the S&P 500 jump 2.2 percent last Friday (February 25). Bitcoin’s association to stocks is reaching a record high, implying that equities would open lower or at best subdued on Monday.
The issue seemed to be affecting the Bitcoin hash rate, which is the amount of computer power utilized to generate and execute transactions on the network. According to data from Blockchain.com, it was approximately 173.8 million terahashes per second on Saturday, down from a high of 248.1 million terahashes on February 12.
“The Bitcoin hash rate has been declining as many miners in both Ukraine and Russia have been hit by the Ukraine war,” Hayden Hughes, CEO of Alpha Impact, a trading social-media platform, said in a statement on Sunday.