Bitcoin (BTC) fell to its lowest level on February 22 when the fallout from the expected Russian invasion of Ukraine led to new market problems.

Hourly candlestick chart BTC / USD (bit stamp). Source: Trading View
Gold comes to the rescue with bitcoin volatility
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD reached $ 36,400 overnight on Bitstamp, the lowest level since February 3.

Volatility was high when Russian President Vladimir Putin gave an almost hour-long speech on the state of the conflict in Ukraine. Putin eventually recognized two breakaway republics in the east of the country and then ordered Russian troops into what is still officially Ukrainian territory.

As a result, equities and risk assets are falling as Russian companies are expected to suffer as tensions escalate due to the extensive war.

The Russian ruble fell side by side, breaking 80 against the dollar and reaching a record low of 85.6 since 2016. Sanctions from the West are expected later in the day, which are likely to lead to further losses.

Gold was a surprise winner when it managed to avoid losses to strengthen its status as a safe haven – unlike Bitcoin.

The reaction from market observer Holger Spitz: “Bitcoin does not seem to be a safe haven in the event of a geocell crisis.”

“Digital gold (Bitcoin) has fallen to $ 1,900 per ounce. The relationship between digital and analog gold is now negative. The story that digital gold is the best way to escape has not spread in Ukraine. ”

Correlation Gold / Bitcoin, BTC / USD and XAU / USD chart. Source: Holger Zschepitz / Twitter
At the time of writing, XAU / USD is up over 6% so far this year, while BTC / USD is down 23%.

“It’s great to see gold doing so well in these times of extreme uncertainty, creeping up while more risky assets like stocks and bitcoin are having a hard time,” said Michael van de Poppe, a contributor to Cointelegraph.

Zschepitz added that investments in gold-backed exchange-traded funds, or ETFs, have been on the rise through February.

The Bearish cross series looms
Thus, Russia has become the center of attention of bitcoin traders, who on Monday watched with longing as the clouds gathered over the Asian markets.

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A fall in technology stocks amid new regulatory measures from China sent some of the largest stock prices down in two days, including Tencent.

“$ 39.6k is now a major new resistance that bitcoin bulls must overcome,” analyst Matthew Hyland noted on Tuesday.

He added that the 3-day moving average convergence / diversity is preparing to print a bearish crossover, which is in direct conflict with previous hopes that a break higher could lead to a new strength in the price of bitcoin.

Recent events have also weighed on sentiment, with the Crypto Fear & Greed Index falling to 20/100 – in the extreme fear category.

Source: CoinTelegraph