Concerns about a possible Russian invasion of Ukraine weighed heavily on crypto markets this week, knocking off nearly $160 billion in market value as investors sought safer havens.
Crypto and broader markets have fallen as a result of Western politicians’ fears that a Russian invasion of Ukraine is near. Gold, US Treasuries, and stablecoins profited as safe-haven investments.
Trading volume increased to $72.3 billion from $64.5 billion throughout the week.
Many have begun to ask if crypto markets, notably bitcoin, are a viable bet against volatility now that they are trading more in line with traditional asset classes. For the first time in two weeks, the world’s largest cryptocurrency fell below $40,000 on Friday.
In a postal statement, Alex Kuptsikevich, senior financial analyst at FxPro, stated,
“Bitcoin has definitely lost its function as a protective asset recently, displaying almost no association with gold,”
” which was in great demand on Wednesday and Thursday.”
“It is quite possible that from the end of January to mid-February, we saw a pullback after the”
“momentum of the decline, and now a new step down is being formed.”
” The nearest goal with this push down is located near this month lows around $36,000.”
Concerns about rising inflation and interest rate hikes in the United States had upset crypto markets earlier this year. Of course, with most major tokens plunging in tandem with a meltdown in equities and foreign exchange.
Lastly, This week, a significant portion of crypto activity looked to be channeled towards stablecoins. That’s, as investors sought less volatile alternatives while preserving exposure to crypto.
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