I think the isue of inflation rate is currently contributing more to the downtrend of Bitcoin since April 2022.
Yes. the war between Ukraine and Russia is hitting up fear of some massive selloff, but the USA inflation rate has ggreater effect on the crypto market in my opinion. There has been a lot of negative speculations, predictions and analysis of the impact of the inflation on the crypto market prices.
All significant events in this world influence each other. The world of cryptocurrency is not isolated from our world. Russia has committed military aggression against Ukraine and wants to destroy it as a state. The infrastructure in Ukraine is being destroyed, people are dying en masse. Moreover, civilians probably die more than the military. Russia deliberately shells the peaceful cities of Ukraine, seeking to increase panic among the civilian population and provoke riots against the government. However, on the contrary, it rallied the Ukrainian people, where more than 97 percent are determined to fight to the bitter end.
On the other hand, Russia has already lost more than 38,000 of its soldiers and officers (according to the Armed Forces of Ukraine) and more than 46,000 according to the Russian Ministry of Defense, which are not made public. Taking into account the wounded, this figure is already approaching 120,000. Moreover, the Russians have a very poorly organized medical care on the front line, and as a result, about half of the wounded die.
From an economic point of view, things are even worse. Both states are sharply poorer from this war. In addition, Russia is significantly affected by the economic sanctions imposed, and over time this influence will only increase.
Now about 40 states are providing military, financial or humanitarian support to Ukraine, without which Ukraine could not survive the war against such a strong enemy. With this help, the Armed Forces of Ukraine are able to force Russia to military surrender.
At the same time, many states, as a result of this assistance to Ukraine and the sanctions imposed against Russia, themselves bear large material costs. All this, of course, has a negative impact on the citizens of most states. Their incomes will fall, the inflation caused by this war will rise. People are forced to sell at least part of their cryptocurrency. This will also negatively affect the cryptocurrency market.