Coinmarketcap (COIN) and the overall cryptocurrency market are down significantly as Russia begins a “military action” in Ukraine. Cryptocurrency prices have fallen 5.35 percent, resulting in the loss of an additional $100 billion in investor value.
Bitcoin is currently trading at $35,150 with a market capitalization of $664 billion, a 7 percent dip from the previous day’s highs. As a result, the weekly loss in Bitcoin is now at over 20%. A similar price collapse has occurred in the cryptocurrency market! Ethereum (ETH), one of the top ten altcoins, is down between 8 and 10 percent.
Analysts have predicted that Bitcoin’s price might fall to as low as $30,000 or even lower in the coming months. Unwittingly, Bitcoin and the rest of the crypto industry have become entangled in the conflict between Russia and Ukraine.
Geopolitical warfare between China and Russia has had an impact on the global economy. In addition, the crypto market had been swayed by a continual stream of positive and bad news. We’ve been seeing a shift from equity and crypto to risk-off assets like Gold. Last Monday, the MCX Gold price soared dramatically, reaching a one-year high.
Bitcoin’s Volatility Is Not Going Away Anytime Soon
Bitcoin (BTC) is expected to remain in a range for the foreseeable future until the recent turn of events between Russia and Ukraine has some good effect. In fact, if Wall Street sees further declines, the sell-off could become even more ugly.
The corrections in the broader stock market have been carefully followed by the crypto market. Stocks fell another 2% on Wednesday, with the S&P 500 setting a new low for the year 2022. Popular cryptocurrency market analyst Lark Davis writes:
Key support for #bitcoin right now is at $33,000 and $29,000.— Lark Davis (@TheCryptoLark) February 24, 2022
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. pic.twitter.com/blbOQ9WaAN