In the cryptocurrency sector, several global concerns can cause a market drop. For instance, the recent Russia-Ukraine crisis made an impact on the rise and fall of crypto prices such as Bitcoin and Ethereum.
The price of Ether climbed 11.4% to a daily peak of $3,148. This change happened after coming down to $2,826 on Feb 15, Tuesday early trading hours, according to data from Cointelegraph Markets Pro.
Tuesday’s gains in crypto came when Moscow said that the Russian Defense Ministry has started returning some soldiers to deployment sites. This is after their training activities near the Ukraine border. The growing tension between Russia and Ukraine seems to come into resolution. As per the US, Vladimir Putin, President of Russia, has not confirmed the decision to invade Ukraine.
Ether has fared much better in previous days. ETH is known as the 2nd largest cryptocurrency by market capitalization. The market’s positive sentiment is helping Ethereum.
Traders in the market are talking about ETH’s recent price activity. There’s a discussion on what to expect in the coming weeks. Numerous ETH-focused ETFs are experiencing increased capital flows. It is due to institutional interest in Ethereum investment rising. It brings the price of this asset upward.
Ethereum has distinct drivers that investors tend to prefer regarding token-specific triggers. Ethereum’s major institutional use remains a crucial focus for investors. It is the impact of Ethereum-based funds experiencing a recent rise in demand.
Regrettably, for crypto investors, these cryptocurrencies have become more widespread. As a result, they are tracking other assets quite tightly. There are many to admire the anticipated capital flows into this crypto industry, particularly for meg-cap tokens. That is if this trend continues.
Financial markets are still volatile due to global and macroeconomic issues. Aside from the threat of the Russia-Ukraine crisis, there are also rising inflation rates in the United States. The prospect of massive conflict has put markets on edge in recent days. And, most risk assets pricing is in a bearish outcome.
The crypto market’s daily price movement is hard to assess. And it’s probably going to continue. They are subject to greater price volatility in response to global and macroeconomic news. However, traders believe ETH’s present position will lead to a quick return to the $4,000 level.
Presently, the total market capitalization of cryptocurrencies is $1.978 trillion. Overall, this market is still moving on the right path. But, it is in a turbulent way.