No Place To Hide In Crypto As Russia Attacks Ukraine
- Crypto markets retreat amid a global rush to safety
- Expect more pain for crypto in case the global sell-off continues
- If Bitcoin manages to settle below $35,000, it will move towards the $30,000 level
Bitcoin tested the support at the $35,000 level, and other cryptocurrencies found themselves under huge pressure after Russia’s President Putin authorized a ‘ special military operation’ against Ukraine.
Traders Rush Out Of Riskier Assets Amid War Fears
Not surprisingly, crypto markets are deep in red today. Bitcoin is down by more than 8%, while Ethereum has lost more than 12% of its value in the last 24 hours. Other leading cryptocurrencies like BNB, XRP, SOL, ADA, LUNA are all facing a serious sell-off. Meanwhile, the total crypto market cap declined below the $1.6 trillion level.
At the moment of acute crisis, the markets turned to the traditional safe-haven asset, gold, which is currently trying to settle above the $1950 level.
The sell-off has once again highlighted the current status of the crypto market in the global financial system. Traders view cryptocurrencies as high-risk investments and are ready to move their funds to safe-haven assets like gold during any serious panic.
What’s Next For The Crypto Market?
The key things to watch are the developments in the Russia-Ukraine conflict and the response of the West, which will come in the form of strict sanctions on Russia.
The severity of these sanctions and their impact on the global markets will determine investors’ risk appetite for the upcoming weeks. In case the global market mood remains bearish, investors will continue to increase their purchases of safe-haven assets, which will be bearish for crypto markets.
Traders should also keep an eye on the world’s leading cryptocurrency, Bitcoin, which is currently trying to settle below the support level at $35,000. A move below this level will push Bitcoin towards the psychologically important $30,000 level and put more pressure on crypto markets.