Bitcoin Falls Below $35,000 As Russia Attack Ukraine

Bitcoin fell below $35,000 in the Asian trading session today as Russian President, Vladimir Putin, authorized a full invasion of Ukraine.

The larger cryptocurrency market is down as a result of Bitcoin’s decline.

The market capitalization of cryptocurrencies is currently down 15.43 percent for the day, having dropped below $1.5 trillion to $1.45 trillion.

RELATED: US Warns Full-Scale Invasion Of Ukraine Could Be ‘Hours’

Other altcoins are down even more than Bitcoin, which is down 8%.

Ether, for example, is presently trading at $2,323, down 13% at the time of writing. The top 20 cryptocurrencies are shown below.

We’re seeing declines of 14 percent and higher, with Cardano’s native coin ADA leading the way with a loss of nearly 17 percent as of this writing.

What You Need To Know 

In times of geopolitical tensions and inflation, it appears that investors do not perceive cryptocurrency as the asset to turn to.

But Gold and other precious metals are positive.

Despite Russia’s invasion of Ukraine, gold is currently trading at $1,949 per ounce.

Up over 2%. If current market circumstances are sustained, gold will trade for $2,000 per ounce.

Aside from gold, the price of oil has risen to an eight-year high, with Brent oil hitting $100 per barrel.

The price action is also occurring at a time when there is considerable inflationary pressure and a hawkish US Federal Reserve straining too hard to mitigate inflation’s impact on the economy.

In March 2022, the Federal Reserve is scheduled to begin raising interest rates.

Even though all signs lead to bearishness, on-chain analytics show some positive indications of net accumulation.

William Clemente, the chief insights analyst at Blockware and an on-chain analyst, stated that he is still enthusiastic about Bitcoin.

“This protracted regime of spot premium over perps is quite optimistic for Bitcoin,” he said. The summer 2021 regime lasted 88 days, and we are now on day 83 of this one.”

“Am bullish BTC over next few months,” he added in another tweet. Strong on-chain hoarding behavior, coupled with a lot of relative dry powder on exchanges, a stacked bedside in order books, and a protracted spot premium over perps regime.”

He also claimed that the predicted interest rate hike by the US Federal Reserve is already priced in.

“March will be here next week, with maximum hawkishness presumably factored in,” he said.

As the invasion continues, more bearishness in the cryptocurrency market is likely to emerge, as investors attempt to invest in assets that are seen as safe havens, such as gold and other precious metals.

As investors try to make sense of the current situation, they will place a greater emphasis on safety net investments such as government bills and bonds. At the time of writing, Bitcoin was trading at $34,700.