A Bitcoin coin sits on a screen showing the Bitcoin – US dollar exchange rate.
Fernando Gutierrez-Juarez | image union | beautiful pictures
Digital currencies took a beating on Tuesday as geopolitical tensions over Ukraine rattled global markets.
Bitcoin sank to as low as $36,370 in early morning trading, its lowest level in more than two weeks. The world’s most recently traded cryptocurrency fell 6% in 24 hours to a price of $36,818.
Other digital assets also fell, with ether 8% off and XRP sink 15%.
Analysts attribute this drop to escalating tensions over the Russia-Ukraine crisis. Russian President Vladimir Putin on Monday ordered the army to enter two breakaway regions in eastern Ukraine, shortly after the declaration of independence.
The move has raised fears of a full-blown invasion, causing global reserves to plummet as traders’ appetite for risk wanes.
Bitcoin is often touted by proponents as a safe-haven asset like gold, meaning it will provide a store of value in times of uncertainty.
However, the case for bitcoin wallets as a kind of “digital gold” has been broken as more institutional investors start trading it and the cryptocurrency is becoming more relevant to the volatility in the traditional market. system like securities.
Bitcoin is currently far below its all-time high above $68,000, which it reached in November 2021, and some investors believe this is just as good as it will be for the cryptocurrency. in a period of time.
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.
“According to this cycle, it won’t be until late 2024 to early 2025 before we can welcome the next bull market on bitcoin,” Du said.
The bitcoin halving reduces the rewards crypto miners receive for verifying transactions, effectively squeezing the supply of newly issued coins.
