The Crypto market drops as Russia-Ukraine tension increases. Is it a good time to buy?

As Russian President Vladimir Putin declared on national television that the country’s army would begin a “special military operation” in Ukraine, crypto and stock markets throughout the world plummeted.

Heavy impact on the crypto market

The Russian army launched missiles at many locations throughout the country, including the capital of Kyiv and the city of Kharkiv in Ukraine, this Thursday morning. Notably, as ThecoinRise reported, Ukraine recently legalized Bitcoin amid heavy tension.

The Crypto market is witnessing heavy drops, with Bitcoin (BTC) going down by more than 8%. It is currently trading around $35,100. Altcoins like Ethereum (ETH), Solana (SOL), Terra (LUNA), and Polkadot (DOT) have dropped in double digits.

The total crypto market capitalization has also plummeted by 9.3% to $1.57 trillion.

A good time to buy?

As the volatility is spiking, the panic situation among crypto investors has led to heavy buzz in social media platforms like Twitter, with everyone wondering if it is a good time to buy or not. 

The CEO of Crypto Exchange Giottus, Vikram Subburaj, commented on the situation by saying that panic selling is an expected reaction during these times of global crisis. He went on to add:

“The key thing to note is that the fundamentals of the crypto asset class haven’t changed. While there is a possibility of further declines, the asset class is expected to absorb large volume buys beyond another 20% drop.”

Subburaj said that if we look at the crypto market history when the COVID-19 pandemic hit, the world witnessed one of the biggest crashes in crypto and stocks. However, the two markets recovered to new ATH within 18 months.

He said that this could be a good point to buy as “the current crisis presents an opportunity to invest in these assets at a lower price.”

The research team of CoinDCX said that, unlike history, the crypto market is now moving in the same direction as other markets. This developing trend is an indication of the crypto market’s maturation.

It added that:

“With no end in sight for the ongoing geopolitical conflict, the traditional market and the digital asset sector may face extended uncertainties in the road ahead.”