Bitcoin fell 4% on Tuesday, briefly hitting a one-month low because of growing tensions between Russia and Ukraine.
The Bitcoin Fear and Greed Index, which is used by many investors, showed a lot of fear. Reports said that Russian President Vladimir Putin had sent troops into areas of eastern Ukraine that had been taken over by separatists.
Bitcoin has lost about 20% of its value since it hit a high point earlier this month. It now stands at $37,000, down from $43,000. The token is about to enter a bear market, says Huobi’s CEO. It may not recover much until late-2024, he says.
People in the market now think the price could fall as far as $32,000. @CredibleCrypto, a Twitter analyst, says:
“There are a couple of different ways I can see this playing out but want to see some more (price action) develop for now. Big picture- weekly support at 32-34k, still don’t think 28k will be breached.”
Invalidation pretty much hit at this point- time to reassess. There are a couple of different ways I can see this playing out but want to see some more PA develop for now. Big picture- weekly support at 32-34k, still don't think 28k will be breached, will know more in a few days. https://t.co/0ZcJq8Lh6N pic.twitter.com/TQmp6nnJqa
— Credible Crypto (@CredibleCrypto) February 22, 2022
A lot of people have lost money with the world’s largest cryptocurrency. A three-week low was set for Ethereum, which dropped more than 6%. XRP and Cardano both fell 13% each, as well. Over the last 24 hours, the value of the crypto market dropped 7% to $1.75 trillion.
All the stock markets around the world went down, and the dollar rose because people were looking for safe havens. There are also fears that the Federal Reserve will be more hawkish this year and that inflation will rise. This has made the outlook for risky assets less positive.
Stablecoins were the most popular among their peers over the last 24 hours, with Tether taking the top spot in that time. If you want to make money, gold and U.S. Treasuries have also been a good choice this month.
There’s still a chance
Still, not everyone in the crypto market is pessimistic about it. Using the Bitcoin stock-to-flow model, Plan B said Bitcoin’s 200-week moving average showed a bullish trend, and that it would move past the volatility. Analysts have also said that the currency could rise quickly because of its low price, which makes more people want to buy it.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.