Several macroeconomic events have recently impacted the cryptocurrency market over the last two months: First, the Omicron scare caused a crash, and then the US Federal Reserve announced balance-sheet tightening, which frightened the market. It was followed by a sharp drop in technology stocks, which had an impact on cryptocurrency prices. Furthermore, President Biden is expected to issue an executive order on cryptocurrency regulation, adding to the uncertainty.

Cryptocurrencies dropped significantly as the threat of Russia invading Ukraine escalated amid border clashes, prompting the crypto investor community to sell risky digital assets in order to protect portfolios from further price drops.

The war has impacted the cryptocurrency market, the global crypto market cap slid to as low as $1.57 trillion, losing almost 9.66 percent in the first 24 hours of the invasion. It is suspected that Russia may use cryptocurrency to blunt the impact of the sanctions bypassing control points. It may also ink deals with anyone globally working with them via digital currencies.

The same outcomes will be witnessed in the crypto market as they are in global financial markets, particularly Bitcoin. Many experts feel Bitcoin will benefit from this, but the same is not a completely evaluated theory. Everything, in the end, is a function of emotions, and conflict is usually a negative emotion for financial markets. The influence of geopolitical volatility on the economy is widespread, and crypto is no exception. Users must remember that risk and reward are intertwined and can be impacted by external circumstances.

Markets historically plummet on the first day of war and then show indications of recovery. In the case of Covid-19, the markets crashed in March 2020, even though there were only approximately a thousand cases in India at the time. This foreshadowed the pandemic's massive impact. The market did not begin to recover until much later. A similar trend is currently being observed in the current scenario.

Others argue that the "fundamental" values of cryptocurrency have not changed and that Thursday's slump is an opportunity to ‘#buythedip’, encouraging investors to pile into cryptocurrencies now that their prices are low. Vikram Subburaj, CEO of India's Giotto Crypto Currency Exchange was quoted by Fortune saying that the current prices present an opportunity to invest in these assets at a lower price.