Worryingly, Russia-Ukraine Tensions Could Cause Bitcoin to Drop to $30,000.

Digital currencies took a beating on Tuesday as geopolitical tensions over Russia-Ukraine rocked global markets.

Bitcoin fell to its lowest level in more than two weeks as fears of a possible Russian invasion of Ukraine led some analysts to predict the largest cryptocurrency could slide towards the key $30,000 level.

Bitcoin fell to as low as $36,370 in early morning trading, its lowest level in more than two weeks. The world’s largest cryptocurrency then reduced its losses, the last trade falling 3% in 24 hours to a price of $37,495.

Other digital assets also fell, with ether down 4% and XRP down 10%.

Analysts attribute this drop to escalating tensions over the Russia-Ukraine crisis. Russian President Vladimir Putin on Monday ordered troops to enter two breakaway regions in eastern Ukraine, minutes after declaring independence.

According to CNBC: The move raised fears of a full-blown invasion, sending stocks worldwide plummeting as traders’ risk appetite waned.

Roque predicts Bitcoin could drop below $30,000 — levels not seen since July — as traders favor gold more, potentially pushing the bullion to an all-time high.

BTCXAU
Chart BTC/Gold

Chris Dick, a quantitative trader at London-based B2C2 crypto market maker, told CNBC:

“Bitcoin, and crypto in general, got locked into Asian stock indices overnight as Russian-Ukrainian headlines boosted price volatility,”

“First there was the sell-off when Putin announced that he had sent troops into Ukraine and then back again as the market processed the headlines.”

Katie Stockton, founder of Fairlead Strategies, says that technical analysis is also not in Bitcoin’s favor. The token, which has been trading below long-term support around $37,400, will face the next major technical test at $27,200, she said.

Du Jun, co-founder of crypto exchange Huobi, said the next bitcoin bull market is unlikely to take place until 2024 at the earliest, when the so-called “halving” event will be. take place. take place.

He said that :

“After this cycle, it will not be until late 2024 to early 2025 that we can welcome the next bull market on bitcoin.”

However, the case for bitcoin as a sort of “digital gold” has broken down as more institutional investors have started to trade it, and the cryptocurrency is becoming more closely aligned with fluctuations in traditional markets like equities.