Bitcoin (BTC) fell to $ 34,300 overnight on February 24 amid growing geopolitical tensions in Europe.
Hourly candlestick chart BTC / USD (bit stamp). Source: Trading View
“Arguments both ways” for Bitcoin price predictions
Data from Cointelegraph Markets Pro and TradingView showed that the news that Russia was launching a “special military operation” in Ukraine led to the collapse of the BTC / USD currency pair with traditional markets.
The markets seemed surprised when at the time of writing there were reports of a terrible three-pronged attack on Ukraine, where the West has already promised to tighten sanctions.
Bitcoin, which already trades with stocks instead of acting as a safe haven, thus showed its own uncertainty, falling more than 12.2% from Wednesday’s local highs to $ 34,300.
Asian stocks were already feeling the pressure, with Hong Kong’s Hang Seng falling 3.5% and the Nikkei reaching a 15-month low.
While traders waited to see the full impact on European and US stock markets, Bitcoin market participants weighed in on what geopolitical developments could mean for the largest cryptocurrency.
“So there are arguments for what should happen to BTC at the moment. Not quite sure I would have guessed it would fall based on the basics. But that’s not enough, that’s a lot! Why?” asked Sam Bankman Fried, CEO of trading giant FTX, in a tweet Thursday.
“Okay, let’s say there are two types of people in the world: fundamental investors and proponents of algorithms. Fundamental investors are looking at the situation and are not sure where Bitcoin / USD should move. Algorithms are accessing data. Historically, what is the trend?
He added that the Ukraine saga could have economic implications even for the economic power of its EU neighbors, and that “alternatives” could take place in their strategies.
At the time of writing, BTC / USD has been trying to recover some of the lost gains that have so far remained above the January low of $ 32,800.
Ruble pain threatens Russian consumers
Meanwhile, Russia’s central bank has announced that it will intervene in the foreign exchange markets after the value of the ruble fell due to recent events.
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The US dollar / Russian ruble hovered at 87 on Thursday, after hovering at 80 a day earlier. The Moscow Exchange Group, which manages the Moscow Stock Exchange, has stopped trading.
Consumer exchange rates have been significantly more volatile, with indicators showing 115 rubles or more against the dollar for those wishing to buy US dollars on the open market.
USD / RUB Temporary Candlestick Chart. Source: Trading View
The reaction of Alex Gladstein, chief strategist at the Human Rights Foundation, known for his pro-Bitcoin stance, caused contempt for the political apparatus of the fiat money system.
He wrote: “I am concerned about how leaders are abusing their power over the paper money that all their citizens depend on and earn for the sake of war.”
“Whether it’s a printing press, a national credit card, or, in this case, actions that could be punished by international markets.”
In Ukraine, the central bank has implemented measures to ban cash withdrawals in foreign currency, sources said.