Bitcoin price today fell briefly below $38,000 on Monday, its lowest price in a week.
The bitcoin price today briefly fell below $38,000 on Monday, its lowest price in a week, as global markets tumbled over concerns that commodity prices spiraling upward due to Russia’s invasion of Ukraine could have an impact more widespread and lasting than previously thought.
The largest cryptocurrency recovered slightly, gaining 1.3% to $39,539 during New York trading hours. Ether, on the other hand, fell as much as 5.7% to its lowest level since February 24, before rallying back to around $2,600. Other popular tokens like Solano, Cardano, and Avalanche also fell, according to valuations from CoinGecko.
Bitcoin has now given up all the gains it made early last week and is once again widely traded alongside other risky assets. Monday’s losses came as oil surged on fears the United States and its allies could ban Russian oil imports, adding to pressure on already high inflation.
Antoni Trenchev, co-founder and managing partner at crypto platform Nexo, said “there are several competing narratives with Bitcoin,” referring to the digital asset’s use as an inflation hedge. and anti-censorship. “Bitcoin is both a risky asset and a risky asset. It is only when the panic happens that there is an initial sale,” he said.
For most of this year, Bitcoin has been trading sideways, failing to sustain any gains above $45,000. Edward Moya, senior market analyst at Oanda, wrote in a note on Friday that “Bitcoin’s extended formation could see selling pressure look to test the $37,000 region.”
The cryptocurrency’s drop reflects a widespread sell-off across Asian stock markets on Monday, which saw Hong Kong’s Hang Seng index drop 3.6% and Japan’s benchmark Nikkei. The copy is 3% off. Russian President Vladimir Putin on Sunday said the fighting would continue until Ukraine accepts his demands, stoking hopes of a quick solution.
With the Russian invasion nearing the two-week mark, a debate has raged over whether cryptocurrencies are a hedge against the growing willingness of governments to seize financial assets. – or a convenient means of evading punishment that needs to be more tightly controlled.
Lloyd Blankfein, a former chief executive officer of Goldman Sachs Group Inc., in a tweet late Sunday said crypto prices currently do not seem to support the former argument.
