Following the escalation of hostilities in Eastern Europe between Russia and Ukraine, the crypto market has had a positive market recovery, which reached a high momentum last Wednesday before crashing on Friday.
The crypto market was startled when the Russian president announced the country’s readiness to carry out a military offensive against Ukraine aimed at the demilitarization of the country. But the market reaction resulting from the statement put traders in panic mode, sending the market into a spiraling downward trend.
However, the market appeared to have recovered from the slump for some days, with donations in cryptocurrency worth millions of dollars coming into Ukraine. In a twist of events, the value of digital currencies started falling like a pack of cards on Friday.
Is Gold Above Bitcoin?
At the beginning of the war, industry analysts were rooting for Bitcoin to prove its worth as a more viable store of value than gold, as the value of Bitcoin continued to rise even before the war started. But as Bitcoin keeps getting floored by gold, investors are becoming more skeptical about the status of Bitcoin as a haven for their assets.
Meanwhile, CoinMarketCap released data showing how Bitcoin is currently performing, with the value standing at $38,839, representing a drop of about 6.44% in the past 24 hours. On the other hand, Ethereum, as the second-largest cryptocurrency, is down by 5.85%, with a price of $2,643 at the time of writing.
In contrast to cryptocurrency, gold rose by 2% to attain its highest level than the previous year as fund owners flooded to the gold market to store their assets.
Furthermore, the gold market continually sees an influx of activity as more investors brace themselves for another uncertain trading week, focusing on the ongoing war between Russia and Ukraine.
Other Market Trend
It is not just the crypto market that is bleeding from the current price fluctuation; the Dow Jones Industrial Average and the S & P 500 both plummet by losing 1.9% of their market value in an overnight trading period.
An equity index company, MOEX, that tracks the largest companies in Russia in terms of portfolios, has also shed about 20% of its market value. Several other high-profile companies are not left out.
An exciting thing about Ukraine is that it is the biggest country globally in terms of digital currency adoption. Ukraine’s plan to legalize the use of crypto before the escalation of conflict put a halt to its plan.
The United States and some other countries have played a part by providing the support Ukraine needs to persecute the war, both militarily and economically. On its part, Russia has been slammed with extreme economic sanctions to subdue the Eastern European superpower and put an end to the bombing and shelling of its neighboring country.
Notwithstanding, Russia is expected to find a solution in cryptocurrency as it tries to evade the economic hammer it is currently experiencing.