Today Bitcoin rests just over $40,000, ticking down from around $42,000.
Omkar Godbole at Coindesk writes that BTC is acting like ‘high growth tech assets’ instead of the cryptocurrency safe haven it’s been billed as over the last few years. The experienced analyst characterizes BTC’s contemporary action as “wilt(ing).”
“Bitcoin fell over 7% to $40,500 on Thursday, registering its largest single-day decline since Jan. 21, as reports of Ukrainian forces and pro-Moscow rebels exchanging fire in eastern Ukraine saw investors ditch risky assets for safe havens like gold,” Godbole writes.
So what’s up with Bitcoin?
There are the usual Federal Reserve concerns, but many analysts also tie recent behavior to the Russia-Ukraine situation, where observers on both sides seem to be waiting out a strange 21st-century version of a castle siege.
While gold has topped out at $1900 per ounce, the S&P 500 has sunk about 2% with corresponding crypto decreases.
The market, says Edward Moya, senior market analyst at Oanda, as quoted in Godbole’s coverage, is in “full de-risking mode.”
“Bitcoin is paying the price. Fears over geopolitical concerns and potentially aggressive central bank tightening has cryptos across the board in freefall,” Moya said. “A month ago, no one wanted to touch gold. Now gold has suddenly become the flavor of the month, now that investors are scrambling for safe havens as geopolitical risks intensify and fears grow that the central banks might go overboard with tightening monetary policy.”
Still, there are those who hope for better Bitcoin activity in the next market cycles.
“Traders have a strong hope that BTC will soon smash a new massive strength, as well as garner support to overcome any further price drops in the coming days,” wrote an analyst at Investing.com recently, crossing fingers along with others who have bought BTC at higher prices.
What will BTC do next week? We’ll see.
