While the world is in the grip of Russian military actions, it is also just lunch time again. We look at the live Bitcoin price and the prices of the top 25 crypto. Then, of course, we look at the impact the Russian action is having on the crypto market. We also look at whether Bitcoin can live up to its reputation as “digital gold. Finally, we look at when real panic will set in for crypto.
We begin, of course, with the live Bitcoin price and the prices of the top 25 crypto.
Live Bitcoin price crashes, prices top 25 crypto crash harder
At the time of writing, the live Bitcoin price is quoting EUR 31,103.52 ($35,015.59). This is 9.72% lower than during our crypto lunch yesterday.
The prices of the top 25 crypto are also crashing hard. Apart from a few stable coins we only see (heavy) price drops. The biggest loss in the top 25 crypto so far today is for ChainLink (LINK) and Shiba Inu (SHIB) who both lose 19.06%. On the Tradeincrypto.com site you can see all live crypto prices.
Bitcoin and crypto undercut by Russia. What can we expect next?
For the cause of the crypto crash we don’t have to look far. After the Russian invasion of the Ukraine, we are seeing worldwide losses in the various financial markets. From risky investments people are shifting their focus to more secure investments such as commodities and gold.
For the crypto market, of course, this is not good news. The uncertainty leads to questions. What can we expect now? What will be the impact of the sanctions and are there chances that the demand for Bitcoin and crypto will increase after all? Our colleagues at Tradeincrypto.com answer all these questions in a comprehensive analysis and outlook.
Is Bitcoin living up to its secure reputation as digital gold?
In the past, Bitcoin was often described as “digital gold. The crypto was also said to be a safe haven in the face of economic uncertainty. The ongoing uncertainty over inflation and the political uncertainty in the wake of Russian actions, however dire the situation, provide the ideal opportunity to test these assumptions against reality.
BTC not (yet) a safe haven in political turmoil
We see that Bitcoin as a safe haven in the face of political turmoil is not yet an option for many investors.
In the Tweet below, we see how the gold and Bitcoin prices diverge after Russia’s invasion. From this we can conclude that investors are fleeing to real gold but not digital gold.
Twitter won’t load because you didn’t give permission.
Safe haven: Gold or Bitcoin?
We found out today. pic.twitter.com/Z9smsr8pu6
– David Ingles (@DavidInglesTV) February 24, 2022
As the writer of the Tweet does, it is obvious to draw conclusions with this also about whether Bitcoin is digital gold.
Bitcoin as digital gold?
Given the inflation rates, you would expect Bitcoin to be popular as “digital gold. Before last night’s raid we saw that there is currently little demand in the crypto market. Now that we take the above picture and see how the correlation between gold and Bitcoin is getting less and less on the chart, it is obvious to conclude that Bitcoin is misqualified as digital gold.
Yet it is a bit too early to write off this user case. Indeed, if we look at the correlation BTC – Gold on Tradingview.com we see a very different picture.
The correlation between Bitcoin and gold over time. Tradingview.com
First, the return on Bitcoin has been much higher than the return on gold since 2000. Next, we see that while the Bitcoin price is much more volatile (moveable) than the gold price, it came and stayed above the gold price since the late 2020s. This makes the statistic in the Tweet inappropriate to conclude anything about the gold-Bitcoin correlation.
Is there crypto panic?
Naturally, investors are licking their wounds after the financial thump that was dealt this morning. In the process, the end of tensions certainly does not seem to be in sight. Sanctions and further Russian action could lead to all sorts of economic consequences.
However, if we look at the order books on major exchanges, we see that there is still plenty of support for Bitcoin and other crypto on the $30,000 level. That is where there are large buying orders. Analysts will therefore only start to worry if the BTC price drops below $30,000. For the time being, it is important to follow the market closely and to prepare for trading in uncertain conditions.
Want to stay informed about the latest price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly Monday morning price forecast might be a reading tip. “Please note: We never give financial advice, so our contributions can’t be interpreted that way either. Always do your own research and decide on rational grounds if, when, what and how much you want to invest in.”