{"id":8644,"date":"2022-02-22T09:25:12","date_gmt":"2022-02-22T09:25:12","guid":{"rendered":"http:\/\/egrowonline.com\/?p=8644"},"modified":"2022-02-22T09:25:12","modified_gmt":"2022-02-22T09:25:12","slug":"bitcoin-loses-to-gold-amid-ukraine-crisis-whats-next-for-the-cryptocurrency","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=8644","title":{"rendered":"Bitcoin loses to gold amid Ukraine crisis. What’s next for the cryptocurrency?"},"content":{"rendered":"


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\tBitcoin dropped to a more than two-week low as fears of a possible Russian invasion of Ukraine prompted some analysts to predict the largest cryptocurrency<\/a> could slide toward the key $30,000 level.\u00a0<\/p>\n<\/div>\n

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\tBitcoin dropped for a sixth straight day, touching a low of $36,372 on Tuesday after Russian President Vladimir Putin said he\u2019s recognizing two self-proclaimed separatist republics in eastern Ukraine and ordering troops there. Other cryptocurrencies also declined, with Ether off as much as 2.9% and XRP down as much as 6.7%.\u00a0<\/p>\n

\tBitcoin dipped below $40,000 level over the weekend and kept weakening as the Ukraine crisis deepened, undermining the argument that cryptocurrencies are a haven in times of geopolitical turmoil. At the same time, gold has reached its highest level since June.<\/p>\n

\t\u201cIn the globe\u2019s latest maelstrom — U.S.\/Russia\/Ukraine — Bitcoin, the asset purported to be the answer to every question, has quietly weakened and is notably underperforming its arch-enemy, gold,” said John Roque of 22V Research in a note on Monday.<\/p>\n

\tRoque predicted Bitcoin may fall below $30,000 — a level it hasn\u2019t seen since July — as traders increasingly favor gold, potentially pushing bullion to an all-time high.\u00a0<\/p>\n

\t\u201cBitcoin\u2019s inability to hold $40,000 amid heightened Ukraine tensions means $30,000 is back in play,” Nexo co-founder and managing partner Antoni Trenchev said in an email. \u201cGeopolitics has, for now, replaced inflation as the primary driver of both traditional and crypto markets.”<\/p>\n

\tTrenchev sees last summer\u2019s lows of around $29,000 as a \u201clast line in the sand” but expects Bitcoin to hold at $30,000, with significant buying interest at that level.<\/p>\n

\tKatie Stockton, founder of Fairlead Strategies, said technical analysis isn\u2019t in Bitcoin\u2019s favor either. The token, which is already trading below a long-term support level of around $37,400, would face its next key technical test at $27,200, she said.<\/p>\n

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