Bitcoin was falling Thursday after Russia launched an attack in Ukraine. Analysts say this crisis may push the world’s most traded cryptocurrency below $30,000.
Russian military units invaded Ukraine overnight after months of threats and failed attempts at a diplomatic resolution, putting Europe in its greatest crisis since the collapse of the Soviet Union and roiling global financial markets.
Explosions were heard in Kyiv, the Ukrainian capital, and other major cities across the country, the New York Times reported. Russian forces landed near the key port city of Odessa, on the Black Sea coast, the Times reported, citing Ukrainian officials.
‘A Perfect Storm’
Bitcoin was down sharply to $34,617.93 at last check Thursday, its lowest level since July 20, according to data firm CoinGecko.
Ethereum was off 12% to $2,336.16 and dogecoin was down 14.4% to $0.112809.
U.S. stock futures plunged. S&P 500 futures fell more than 2%. Dow Jones Industrial Average futures lost more than 600 points. Gold and oil prices surged, while bitcoin and other cryptocurrencies fell.
“The Ukraine crisis, compounded by rising interest rates and crypto regulations in the US, may create a perfect storm driving the bitcoin to test the $30,000 level,” said Winston Ma, managing partner of CloudTree Ventures, Author of The Digital War – How China’s Tech Power Shapes the Future of AI, Blockchain and Cyberspace.”
Ma said the Ukraine conflict has created more uncertainty to the crypto market, on top of imminent rate hikes from the Fed Reserve, further testing the long hailed notion that bitcoin could serve as an asset to hold during economic or geopolitical chaos.
“So far, bitcoin-crypto assets are acting more like high growth tech assets, with the cryptocurrency continuing to move in lockstep with growth-sensitive, risk-on assets like equities,” he said.
MA said that in the institutional partnership in 2020 encryption capacities, the institutional partnership of Crypto has created consolidators to sensational risks at risk / risk of risk in traditional markets. ,
A Nicholas Koli strategist told Diko: “The crisis of Russia and Ukraine are linked to all risk markets, not just Bitcoin.” The news flows in this region have been distracted on both sides, while at present good news / bad news, a strong fluctuation of value and market activities are difficult. ,
By adding a technical approach to Bitcoin Business, Bitcoin is damaged, adding a technical approach to Bitcoin activity unless these changes are disrupted as part of the BITCoin technical approach.
He said, “This negative vision is also supported by the recent market of the latest news.”
Cawley told recent news that Ukraine is legalizing bitcoin, Fidelity is launching a bitcoin ETF in Europe, and stories that $ 10 trillion asset manager BlackRock is preparing to offer digital currency support to your clients. “It puts more pressure on space, but it isn’t.”
‘An Unwilling Participant’
Cali said he seemed that Petquin would continue to swim with the marginal bias and resolve the conflict in Eastern Europe. ,
“Petquin is one of the participants for orted instability, which beats all the risks of Russian and Ukraine stress.” “Rolling rotary coaster is not low, but if Wall Street saw very large sales, it may be ugly when the investor begins to expect the long military conflict.”
Petquin bars can suffer from a melee, but once the panic sells, long-term bets will come quickly “
Moya said Hudler will be tested soon, “encryption investors in the word that keep their position despite the price.
“When looking forward to a new working week with a serious cloud week, there are many assets that can take great volatility and volatility direction based on world leaders.” However, my first idea of markets begins with a simple evaluation of liquidity and serial downs. “
The following week there is a military action where most capital markets are closed.
“There will be a short liquidity, but it is not really accessible to risks.” “There are, however, famous assets famous for a weekend company: Cryptocracy.”
Although some of these new properties categories will see the option in Fiat, and therefore a safe haven. About the positive reference of the market. †
Despite the presence of a lot of speculative currency, it focuses on “The most popular and integrated structural: bitcoin.”
“This figure is 39,500, which is the first step that is invested this week, but 32500 looks like” point “without returning.
Alex Lviv said, “Pay nothing, but there must be limitations at this time.”
Bitcoin has plummeted by about 19 percent in 2022 (year-to-date), Mint reported. The digital currency is over 46 percent away from its record high of near $69,000 in November 2021.
As Bitcoin dropped to an over two-week low, analysts said the digital token could slide further to the key $30,000 level.
In a note on February 21, John Roque of 22V Research said Bitcoins had weakened in the midst of a global maelstrom between US, Russia and Ukraine despite its claim to be a haven in times of geopolitical turmoil, underperforming arch-rival gold, Bloomberg reported.
According to Roque, Bitcoin prices may tread below $30,000, while bullion may rise to an all-time high with traders increasingly favouring gold. The last time Bitcoin dropped below $30,000 was in July 2021.
Nexo Co-Founder and Managing Partner Antoni Trenchev echoed Roque’s belief and said the digital currency could see $29,000 as a “last line in the sand,” but hold at $30,000, with significant buying interest at that level.
Trenchev said the inability of Bitcoin to hold at $40,000 amid the Russia-Ukraine crisis “means $30,000 is back in play.”
“Geopolitics has, for now, replaced inflation as the primary driver of both traditional and crypto markets,” Trenchev said in an email to Bloomberg.
Katie Stockton, Founder of Fairlead Strategies, said the digital token, currently trading below its long-term support level of $37,400, is expected to face its next key technical test at the $27,200-level.
In January 2022, US investment company Invesco also said Bitcoin could tumble below $30,000 this year. However, it cited the bursting of the crypto bubble as a reason for the fall.
“The mass marketing of Bitcoin reminds us of the activity of stockbrokers in the run-up to the 1929 crash,” Business Insider quoted Paul Jackson, Global Head of Asset Allocation at Invesco, as saying.
Bitcoin loses to gold amid Ukraine crisis. What’s next for the cryptocurrency?
- Bitcoin dipped below $40,000 level over the weekend and kept weakening as the Ukraine crisis deepened, undermining the argument that cryptocurrencies are a haven in times of geopolitical turmoil
Trenchev sees last summer’s lows of around $29,000 as a “last line in the sand” but expects Bitcoin to hold at $30,000, with significant buying interest at that level.Bitcoin dropped to a more than two-week low as fears of a possible Russian invasion of Ukraine prompted some analysts to predict the largest cryptocurrency could slide toward the key $30,000 level.
Bitcoin dropped for a sixth straight day, touching a low of $36,372 on Tuesday after Russian President Vladimir Putin said he’s recognizing two self-proclaimed separatist republics in eastern Ukraine and ordering troops there. Other cryptocurrencies also declined, with Ether off as much as 2.9% and XRP down as much as 6.7%.
Bitcoin dipped below $40,000 level over the weekend and kept weakening as the Ukraine crisis deepened, undermining the argument that cryptocurrencies are a haven in times of geopolitical turmoil. At the same time, gold has reached its highest level since June.
“In the globe’s latest maelstrom — U.S./Russia/Ukraine — Bitcoin, the asset purported to be the answer to every question, has quietly weakened and is notably underperforming its arch-enemy, gold,” said John Roque of 22V Research in a note on Monday.
Roque predicted Bitcoin may fall below $30,000 — a level it hasn’t seen since July — as traders increasingly favor gold, potentially pushing bullion to an all-time high.
“Bitcoin’s inability to hold $40,000 amid heightened Ukraine tensions means $30,000 is back in play,” Nexo co-founder and managing partner Antoni Trenchev said in an email. “Geopolitics has, for now, replaced inflation as the primary driver of both traditional and crypto markets.”