Doomsday is officially here for Eastern Europe. This bad news surely resonated with the entire world. Russia entered Ukraninan borders after acknowledging two independent states in Ukraine. In turn, Russia decided to hold “military operations” and troops flooded inside the Ukrainian borders. How did the crypto crash react to such bad news? In this article, we’re going to have a look at US equities, Bitcoin, and Ethereum prices. HINT: they didn’t do so good!
The Equity market reacted negatively
Markets directly took a hit in the US. The S&P 500 for example has already fallen by about 3%. We don’t assume this is the end of the crash. A price loss of around 10% still seems not unlikely since the war has only just begun. The full war could escalate further, which is why we might see price losses of over 10%. However, this remains to be seen
Crypto crash – Bitcoin Price fell more than 8%
Bitcoin was still considered on a downtrend ever since November 2021. Several attempts to reverse this downtrend occurred but in vain. After a consolidation just below 40K, BTC dropped 8% to a current price of 35K. Prices can still drop further towards 33K, the previous low of 2022.
Ethereum Price Crashed more than 12%
Ether prices crashed harder than Bitcoin. After breaking 3K and reaching a high of 3.2K earlier this month, prices retraced lower. This happened at the same time when Bitcoin breached 40K as well. The correlation in the 3K of Ether and 40K of BTC was clearly underlined since the beginning of 2022. At the current price of 2.3K, Ether prices are expected to drop lower towards 2K or even 1.8K if things get worse.
Conclusion
In times of war and uncertainty, commodities tend to increase in prices. Gold for example was seen currently increasing in prices. Despite Bitcoin being called “Digital Gold 2.0”, Bitcoin fell lower with equities instead. Is this saying still true? Is Bitcoin still a store of value or are there other alternatives today?
The current falling markets are just but a reaction to the news that is happening today. On the other hand, traders and investors sit on the sidelines to buy the dips again. Where will this dip reach? That’s what everyone is discussing today.