Bitcoin briefly fell below $37,000 on Tuesday, its lowest level in more than two weeks. Equities also fell as tensions between Russia and Ukraine escalated, weighing on risk appetite.
Bitcoin prices fell as low as $36,831 on Tuesday morning after Russian President Vladimir Putin announced the recognition of two “republics” in eastern Ukraine.
Bitcoin fell below $40,000 over the weekend and continued to weaken as the crisis in Ukraine deepened, undermining the view that cryptocurrencies are a safe haven in times of geopolitical turmoil. Meanwhile, gold prices hit their highest level since June last year and are now near $1,910 an ounce.
“In the latest global maelstrom of the US, Russia, Ukraine, Bitcoin, the asset considered the answer to all questions. It has quietly weakened, significantly underperforming its nemesis gold.”
hn Roque of 22V Research said in a report
Rock predicts that Bitcoin could fall below $30,000, which could push gold prices to all-time highs as traders increasingly favor gold.