Bitcoin is located on a screen that shows the exchange rate of Bitcoin – US dollar.
Fernando Gutierrez Juarez | Image Alliance | Getty Images
Cryptocurrencies took a beating on Tuesday as geopolitical tensions over Ukraine rattled global markets.
Bitcoin It sank as much as $36,370 in early morning trading, its lowest level in more than two weeks. The world’s largest cryptocurrency last traded 6% in 24 hours to $36,818.
Analysts attributed this decline to the escalation of tensions over the Russian-Ukrainian crisis. Russian President Vladimir Putin on Monday Command troops into two separate areas In eastern Ukraine, moments after declaring their independence.
The move sparked fears of a full-fledged invasion, which sent global stocks down sharply as traders’ appetite for risk waned.
Bitcoin is often promoted by its proponents as a safe haven asset similar to gold, meaning that it should offer a store of value in times of uncertainty.
However, the case for bitcoin as a form of “digital gold” has collapsed as more institutional investors begin to trade it, and the cryptocurrency has become more compatible with the volatility in traditional markets such as stocks.
Bitcoin is now well below its all-time high above $68,000 reached in November 2021, and some investors believe this is as good as it will get the cryptocurrency for some time.
Du Jun, co-founder of crypto exchange Huobi, said that the next bitcoin bull market is unlikely to happen until 2024 at the earliest, when the next so-called “halving” event will take place.
“After this cycle, we will not be able to welcome the next bull market on bitcoin until the end of 2024 to the beginning of 2025,” Du said.
Bitcoin halves the rewards miners receive from the cryptocurrency for verifying transactions, effectively squeezing the supply of new coins in issuance.
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