Global markets reacted with sharp falls for risk assets and rises for safe havens, with oil and gold rising. The bags suffer and fall up to 4%.
Bitcoin came to trade near lows, at $35,000, with a drop of almost 10%. Ethereum, the second cryptocurrency with the largest market capitalization, fell 13% and traded at $2,300.
Bitcoin accumulates falls of 20% in the last week and there are not a few who believe that the $30,000 is coming back into play.
“The crisis between Russia and Ukraine is affecting all risk markets at the moment, not just Bitcoin,” Nicholas Cawley, strategist at DailyFX, commented earlier in the day.
“The constant oscillations of good and bad news make it difficult to value and trade the market at the current time,” said the expert, who believes that until this changes “it is difficult to see any reason to trade bitcoin from the long side or the short”.
“If the war situation worsens, we could see the price of the digital currency even below $30,000”said Ipek Ozkardeskaya, an analyst at Swissquote.
“The other cryptocurrencies will also feel the blow of the Ukrainian war. Remember that when Bitcoin sneezes, the entire crypto industry catches a cold. There is also the fact that higher energy prices make cryptocurrency mining more expensive. So that’s also a fundamental reason that prevents Bitcoin from being a safe haven asset in the current environment,” he added.
Source: Ambito
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