Bitcoin fell to a two-week low due to fears of a Russian invasion of Ukraine. Analysts predicted that the biggest cryptocurrency could fall to $30,000 as a result.
Bitcoin fell for the sixth consecutive day, hitting a low of $36,372 Tuesday. This was after Russian President Vladimir Putin declared that he would recognize two separatist republics in eastern Ukraine. He also ordered troops to those areas. Ether dropped as high as 2.9%, while XRP fell as high as 6.7%.
Over the weekend, Bitcoin fell below $40,000 and continued to weaken as the Ukraine crisis grew. This undermines the argument that cryptocurrency is a safe haven during times of geopolitical turmoil. Gold has also reached its highest point since June.
John Roque, 22V Research, wrote Monday that Bitcoin, the asset claimed to answer all questions, had quietly declined and was notably outperforming its arch-enemy gold in the latest global maelstrom — U.S./Russia/Ukraine.
Roque forecast that Bitcoin could fall below $30,000, a level it hadn’t seen since July. This is because traders are increasingly favouring gold, which could push bullion to an all-time high.
“Bitcoin’s inability of holding $40,000 amid heightened Ukraine tensions means that $30,000 is back on the table,” Antoni Trenchev, Nexo co-founder and managing partner, stated in an email. “Geopolitics is now the primary driver for both crypto and traditional markets.
Trenchev considers the $29,000 lows in last summer’s cryptocurrency market as the “last line in the sand”, but he expects Bitcoin to remain at $30,000 with substantial buying interest.
Fairlead Strategies founder Katie Stockton said that technical analysis doesn’t favour Bitcoin. She stated that the token is currently trading below a long term support level of $37,400 and would be facing its next technical test at $27,000.
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