Critical changes in the crypto market

Against the backdrop of the political situation in the country and in the world, the cryptocurrency market has undergone significant changes.

After the start of the military operation of the Russian Federation on the territory of Ukraine, the rate of the first and largest cryptocurrency in the world, Bitcoin, rushed down. In just one day, Bitcoin has fallen by nearly 9 percent.

It was followed by other less well-known and popular cryptocurrencies: Ethereum (down 13.44%) and Solana (down 12.2% in 24 hours). Avalanche token fell by 18.28%. And all of these figures are far from being record-breaking.

The cryptocurrency was followed by a decline in the performance of real shares of companies. According to analysts, there has not been such a drop since 2008 (note - the global financial crisis in 2008).

On Monday, February 21, the Moscow Exchange Index was down more than 14%, while the RTS Index was down more than 17%. The trades closed in the negative by 10.5% and 13.21%, respectively.

But there are also companies, the financial situation of which remained stable, moreover, whose shares are growing.

For example, the American company Rumito Inc, which owns its own cryptocurrency RUTC. This currency is not tied to ETC/BTC trading pair, as it operates in the real business segment. This implies that RUTC does not depend on BTC price jumps in the market, but remains stable, as it is pegged to USDT.

The New York Times suggested that Russia is moving toward the possible legalization of cryptocurrencies to soften the blow of Western sanctions.

The newspaper cited the events of 2014 in Ukraine as an example. At that time, the West imposed harsh restrictions on Russia. This led to a "crushing blow" to the Russian economy.

"According to economists' estimates, the sanctions imposed by Western countries cost Russia $50 billion annually. Since then, the global market for cryptocurrencies and other digital assets has grown dramatically," the publication said.

Therefore, it is digital assets that will be important for Russia in this situation. In this regard, analysts advise investors in cryptocurrencies to be more vigilant.
Digital assets