Bitcoin tanked on Thursday, with crypto markets in a sea of red after Russia declared war on Ukraine and began military operations in the Donbas region.
The world’s largest cryptocurrency slumped 11% overnight to about $34,900- its lowest level in a month. Altcoins including Ethereum, XRP and Solana logged double-digit losses, wiping out nearly $200 billion in crypto market capitalization.
$35,000 was a key support level for Bitcoin, and its breach today could herald more losses. Speculation was rampant over where the next support level was for the token, and whether a recovery was possible. Twitter user @MatthewHyland_ warns–
If $33k fails then $28.8k would be the last line in the sand
Risk-driven markets across the globe traded sharply lower after Russian President Vladimir Putin said Russia would carry out a “special” military operation in Ukraine, and demanded Kyiv’s surrender, BBC reports. U.S. stocks shed over 1% overnight, while Asian markets dropped sharply in morning trade.
Stablecoins saw the largest overnight volumes in the crypto market, as safe-haven demand soared. Tether one-day volumes surged to more than $50 billion, while Binance USD and USD Coin had nearly $8 billion in combined volumes.
Goal prices surged, as did the Japanese yen and the U.S. dollar.
Reports of explosions in Kyiv rocked sentiment, as investors feared retaliation from western powers. The United States had imposed some sanctions on Russia earlier this week, and had promised tougher moves in response to any escalation by Moscow. But whether this will lead to military intervention remains to be seen.
Only one safe haven?
Traders took to twitter to highlight a major divergence between Bitcoin and gold, with the latter surging to more than 2%. Bitcoin’s recent downward trend has dismissed earlier speculation that the token would be a gold alternative, or even a safe haven.
Journalist @DavidInglesTV tweeted.
Safe haven: Gold or Bitcoin?
We found out today. pic.twitter.com/Z9smsr8pu6
— David Ingles (@DavidInglesTV) February 24, 2022
Bitcoin faces yet another test on Friday, ahead of a closely-watched U.S. inflation figure that could open the door for sharper interest rate hikes this year.
- Crypto Prices Falling Despite “Buy The Dip” Sentiment, Data Reveals Why
- Institutional Traders Dumped Bitcoin At A Record Pace Last Week
- Terra USTC Jumps 300%; Lands Back In Top 100 Cryptos
- Ripple’s EX CTO Dumps 40 million XRP tokens In Last 10 Days
- Dogecoin Soars 35%, Here’s Why Breaking This Level Is Crucial
- Crypto Lender Nexo Denies Fraud, Issues Cease And Desist Notice
- Ethereum (ETH) Price Rise and Stability Pulls Broader Crypto Market to $1 Trillion
- Scoop: This Hedge Fund Is Trying To Bailout BlockFi To Counter FTX
- ETH Whales Add Polygon (MATIC) Amid Prices Surge Of 60% In Last 7 Days
- Uniswap ($UNI) Surges 45% As Trading Fees Surpass Ethereum
- Dogecoin Price Analysis: DOGE Winning Streak Aims to Reclaim $0.077
- Apecoin Price Analysis: Reversal Pattern Sets 21% Rise in APE Price
- Ethereum Price Analysis: Will ETH Relief Rally Revert From $1300?
- Bitcoin Price Analysis- Higher Price Rejection Hints BTC to Retest $20000
- SHIB Price Analysis: Overhead Supply Pressure Hints SHIB to Retest $0.00001
- Avalanche Price Analysis: Will The AVAX Breakout Rally Reach $30?
- Sandbox Price Analysis: U-shaped Recovery could Lead SAND above $1.5
- NEAR Price Analysis: Reversal Within Channel could Sink NEAR Below $3
- Solana Price Analysis: SOL Price Rallying North With Eyes On $59
- XRP Price Analysis: Trendline Reversal Could Dump XRP Back to $0.3