The price of bitcoin (BTC) fell to as low as $34,300 overnight on Feb. 24 due to geopolitical tensions in Europe.
“Arguments Both Ways” for BTC Price Outlook
The news that Russia had launched a “special military operation” in Ukraine caused the BTC/USD pair to fall along with the traditional markets.as shown by data from Cointelegraph Markets Pro and TradingView.
In a move that seemed to take markets by surprise, reports were flowing in of a feared three-pronged attack on Ukraine at the time of writing, with the West already promising harsher sanctions as a result..
Bitcoinwhich was already trading in line with the stock instead of acting as a safe haven, showed like this your own uncertaintyfalling more than 12.2% from Wednesday’s local highs to hit $34,300.
Asian equities were already feeling the pressure; Hong Kong’s Hang Seng Index fell 3.5% and the Nikkei hit a 15-month low.
As traders waited to see the full impact on European and US stock marketsbitcoin market participants took stock of what geopolitical events could mean for the largest cryptocurrency.
“So there are arguments going both ways about what should be happening with BTC right now. I’m not sure I guessed I would go down based on the fundamentals. But she has gone down, and a lot! Why?” asked Sam Bankman-Fried, CEO of trading giant FTX.in a series of tweets Thursday.
“Well, let’s say there are two types of people in the world: fundamental investors and algorithm followers. Fundamental investors look at the situation and don’t know which way the BTC/USD pair should move. Algorithm followers look at the data. Historically, what is the trend?”
Added a warning that the Ukraine saga could have financial consequences even for the financial strength of its EU neighbors and that “alternatives” may have a place in their strategies.
At the time of writing this article, BTC/USD was attempting to regain some lost ground, having so far held above the January low of $32,800.
Ruble Pain Hits Russian Consumers
In Russia, meanwhile, the central bank announced it would intervene in currency markets after the ruble hemorrhaged in value. due to recent events.
The USD/RUB pair turned around 87 on Thursday, after sitting at 80 the day before.. The MOEX Group, the company behind the Moscow Exchange, stopped its operations.
Consumer exchange rates were considerably more volatile; some indices indicated 115 rubles or more per dollar for those who wanted to buy dollars on the open market.
reacting, Alex Gladstein, chief strategist at the Human Rights Foundation, well known for this pro-Bitcoin stance, hurled a snub at the political apparatus of the fiat money system..
“It’s sick how leaders abuse their power over fiat currencies – which all their citizens trust and earn – for war,” wrote.
“Either through the printing press, the national credit card or, in this case, undertaking actions that are likely to be punished by international markets.”
In Ukraine, the central bank took measures to prohibit the withdrawal of cash in foreign currencyaccording reported the sources.
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