After the uncertainty due to expected interest rate adjustments by the US Federal Reserve, the escalation of the Russia-Ukraine conflict, in particular, has caused nervousness in the financial markets in the past few days and weeks. Unfortunately, Bitcoin and the rest of the crypto market are not exempt from this was once again shown on Tuesday night. If you want to start bitcoin trading check the 4 altcoins purchased in 2022
Putin's Ukraine Speech Causes Bitcoin Price to Plunge
During or after Vladimir Putin's speech, in which the Russian President recognized the separatist areas in eastern Ukraine and announced the deployment of troops, the Bitcoin price temporarily fell to $36,400, 20 percent lower than the last interim high about two weeks ago. As a result, anyone who invested in November 2021 at just under $ 70,000 is currently confronted with - 45 per cent.  ​​The losses are even higher for many altcoins.
The signals as to how Bitcoin and consequently the entire crypto market will continue are highly contradictory. In the past few weeks, there have been increasing signs that Bitcoin may have bottomed out at just under $33,000. The fear of a major war with Russia and the far-reaching social and economic implications also caused new panic in the crypto market. However, some of the parameters that can be interpreted positively remain valid.
The number of Bitcoin held for the longer term is surprisingly high. Sixty per cent of all available coins have not been moved for at least a year, so they have remained untouched by their owners despite all the volatility. It suggests that trust in cryptocurrency in principle has increased over the years. It is also indicated by the current record number of over 9.5 million addresses holding at least 0.01 Bitcoin.
Few bitcoins on crypto exchanges
Another indication that a total sell-off will not occur in the coming days or weeks is the low number of Bitcoin circulating on crypto exchanges. The lowest reading in three years could indicate that the ultra-high net worth Bitcoin holders see no reason to sell at prices around and below $40,000 right now. On the other hand, if the so-called whales move vast amounts of Bitcoin onto the stock exchanges, this can be a sign that large sales are pending and the price is crashing – at least temporarily.
Apart from the geopolitical turbulence, the short-term fate of the crypto market is likely to depend on the US stock exchanges. Particularly the technology stocks and the development of the dollar. If the dollar rate rises, bitcoin usually also has a more challenging time.
Gold benefits from the crisis
In the crypto scene, many people believe that Bitcoin is the new digital gold with which capital can be secured against inflation in the long term. In the current situation, however, this is not yet the case. Real gold once again proved to be a crisis investment and is currently at its highest value in eight months at $1,900 an ounce. Anyone who bought gold at the all-time high in August 2020 is currently still almost nine per cent in the red.
How well or poorly the crypto market has performed is essentially a matter of perspective and the observed time frame, regardless of the deep red numbers since November 2021. Anyone who invested in Bitcoin during the Corona-related total crash in March 2020 is currently up 870 per cent. An investment in the index of the US tech exchange Nasdaq brought a current pulse of 140 per cent; with gold, there is a plus of 30 per cent in your investment in the same period.
It again confirms the truism that in the highly volatile crypto market, the right time to invest and corresponding rigorous risk management are critical. (Martin Stepanek, February 22, 2022)
Donations are also accepted in Polkadot
On Tuesday, the government also announced that it would accept donations of the cryptocurrency Polkadot and published a corresponding address on Twitter. Since the transaction fees are significantly lower than Bitcoin and Ethereum, this cryptocurrency is better suited for smaller amounts. The Ukrainian leadership also used the message to thank the crypto community for their willingness to help.
The "official" government addresses are not the only ones to donate crypto money to Ukraine. Another ten million dollars were transferred to the Ukrainian organization Come Back Alive, collecting funds to train and strengthen the Ukrainian army since Russia annexed the Crimea peninsula in 2014. However, the original appeal on the crowdfunding site Patreon was turned off because the US platform prohibits funding for war activities.


Siarra K