Bitcoin and Crypto Market Tank 7% As Putin Announces Military Operation in Ukraine

Bitcoin (BTC) and the broader cryptocurrency market have entered yet another sharp correction as Russia announces a ‘military operation’ in Ukraine. The broader cryptocurrency market is down 5.35% losing another $100 billion of investors’ wealth.

As of press time, Bitcoin is seeing a sharp 7% drop and is currently trading at $35,150 levels with a market cap of $664 billion. This has extended Bitcoin’s weekly losses to more than 20%.

A similar price crash has been witnessed in the altcoin space as well! All of the top ten altcoins including Ethereum (ETH) are down anywhere between 8-10%.

Analysts have been saying that Bitcoin could face a continued downward momentum all the way up to $30,000 and even lower. Bitcoin and the broader crypto market have become unwitting participants in the Russia-Ukraine war crisis.

The geopolitical battle between the two countries has affected markets worldwide. Furthermore, the constant swings in good and bad news had induced strong volatility in the crypto market. We have been seeing that the money has been moving out of equity and crypto to risk-off assets Gold. Over the last week, the MCX Gold price has surged sharply hitting a one-year high.

Bitcoin Will Continue to Move Sideways

Unless there’s some positive outcome of the recent turn of events between Russia and Ukraine, Bitcoin (BTC) is likely to continue moving sideways. In fact, the sell-off can get uglier if Wall Street witnesses further downside.

The crypto market has been closely following the corrections in the broader equity market. On Wednesday, the S&P 500 tanked another 2% hitting its new 2022-low. Popular crypto market analyst Lark Davis writes:

“Key support for #bitcoin right now is at $33,000 and $29,000. At this time we can still look a higher low unless we go back under 33k. 29k Would be key to hold if the war fears really rattle the market. That is support from the 2021 lows”.