With the world on the verge of a possible new war, Bitcoin and cryptos have plummeted once again. Investors are staying away from risky assets during hard times, and the recent tensions between Russia and Ukraine have resulted in another big dip. It comes at a time when Bitcoin was poised for a comeback, breaking the $40,000 level for the first time in a month. On Tuesday, it was trading just over $36K, and it seems that another price slide is possible as the crisis in Ukraine continues.
Bitcoin’s peers have been doing worse, with Ethereum dropping over 8% in the past 24 hours. Both have been able to regain some of the lost levels, but overall, the market is in a downslide just as it was getting back up in the saddle.
A Never-Ending Rollercoaster Ride
According to experts, the price rollercoaster ride isn’t going to end anytime soon. Stabilization is not expected in these volatile times, especially now as Russia has officially recognized the regions of Donetsk and Luhansk. The breakaway regions could very well be the reason for a new war, although everyone is looking for a diplomatic solution.
As flames are fanned the price of crypto goes down. Bitcoin is a highly volatile asset that doesn’t fare well in times of risk. The deepening Ukraine crisis have unnerved crypto investors, resulting in a global crypto market crash. As the leader of the pack, Bitcoin fell over 3% to around $36,000, hitting its lowest point since February 3.
And it’s not just Bitcoin that’s feeling the consequences of the crisis. Ethereum went down too, along with XRP, Solana, Terra, Polkadot, Cardano, and Avalanche. Dogecoin and Shiba Inu fell over 13%, with the global crypto volume being down around 7%.
Trading volume has gone up, on the other hand, but those are mostly sellers. At the moment, Bitcoin’s lowest support is at $30,000. If it falls below that price, it may revert back to 2018 levels. The tensions between Russia and Ukraine are the perfect example of how volatile the crypto market is. Of course, it won’t just surrender to the trends just like that. Bulls will fight the dropping price, although it remains to be seen what comes out of it.
Slightly Good News
Always a light at the end of the tunnel, isn’t it? The most recent plunge in the past 24 hours was somewhat repaired with a slight jump over Bitcoin’s $36,000 level. At the moment of writing this article, it’s currently trading over $38K, meaning that the price drop was overcame pretty fast. Still, Bitcoin is trading near the lowest January prices, so it’s not exactly the silver lining.
Everyone knows that cryptocurrencies are a risky investment, and all it takes is even a mention of a war for the prices to plummet. The Fear & Greed index is in the red right now signaling fear, compared to last year’s greed in the same month. We’re expecting further developments on the Ukraine crisis soon so we can see how the crypto market reacts.