Cryptocurrency market dives as Russia attacks Ukraine
Updated
Some $200m was wiped of the cryptocurrency market in the recent sell-off, as Russia launched a full-scale invasion of Ukraine.
Commenting on Russia’s attack, Josep Borrell Fontelles, high representative of the EU for Foreign Affairs and Security Policy and vice-pPresident of the EU Commission, said: “These are among the darkest hours of Europe since the Second World War.”
As a result of the news, bitcoin (BTC) plunged below $35,000 to reach its February month low. Equities also plunged, while crude oil spot prices spiked, reaching over $100.
Chart of the day: BTC and GOLD react to Russia’s attack
Some bitcoin advocates tout BTC properties as an safe-haven asset, but recent months have seen BTC acting more like a risk asset.
Following Russia’s attack on Ukraine, BTC plunged while gold – most often considered as store of value in uncertain times – held its value.
What is your sentiment on BTC/USD?
Gold has sustained its value, while BTC fell – Credit/Source: TradingViewBitcoin’s performance as against other assets
Lebanese-American essayist, mathematical statistician, former option trader and risk analyst Nassim Nicholas Taleb, along with pseudonymous on-chain analyst Checkmate, tweeted concerning their takes on how the crypto king performed as against other assets:
Hannibal ad portas.
— Nassim Nicholas Taleb (@nntaleb) February 20, 2022
So it turns out #BTC is not a hedge against inflation, not a hedge ag. oil squeezes, not a hedge ag. stocks. And, of course, Bitcoin is not a hedge against geopolitical events --actually the exact opposite.
A perfect sucker game during low interest rates.
Since the Pre-Mar-2020 highs:
— _Checkmate.btc ????⚡????????checkonchain.com???? (@_Checkmatey_) February 23, 2022
Gold is up 12%
SPX is up 25%
NDX is up 40%#Bitcoin is up 260%
Whilst the USD supply is up 40%+
Only 2 assets actually protected you from monetary debasement (even including the recent sell-off).
Only one of them increased your purchasing power
Top cryptocurrency coins by market capitalisation
As of 08:15 GMT:
- Bitcoin (BTC) fell by 7.6% to $35,263;
- Ether (ETH) plunged by 10.64% to $2,402; and
- Binance coin (BNB) dived by 9.51% and was trading at $341.
Winners and losers
- Pancake swap (CAKE), harmony (ONE) and theta network (THETA) were among the worst-hit major cryptocurrencies, losing 17.11%, 17.01% and 16.47% respectively.
- There are no winners among major virtual tokens today.
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