Cryptocoin

The Russia-Ukraine conflict has proved once again that Bitcoin is not as disconnected as expected

In the face of the Geopolitical crisis, Cryptocurrencies have experienced a major hit. Though it is happening for the first time, investors are not much surprised by the consequent fall in Bitcoin’s and other digital tokens’ prices. BTC has been encountering constant hits in the past three months. However, when it started gaining traction in February 2022, the Russian-Ukrainian war pushed it down. According to experts’ prediction, next, it might hit the US$28,000 resistance level.

The Global economy has been drastically hit by the ongoing Russia-Ukrainian war. Every financial sector it undergoing major setbacks and strangely bitcoin too is seeing a decline. With a value of US$32,000, it is the digital currency that suffered the most. The prices of other altcoins have also been pushed to the lowest, questioning the existence of decentralized and independent digital currency markets. Digital tokens are known for their independent existence and are considered safe from market volatility. Their value shouldn’t waver in face of crisis-like circumstances. But the fact the BTC has plummeted to 50% of its all-time high exposes the notion of a decentralized system is misplaced. The Russian-Ukrainian war could well start a ‘crypto winter’, with bitcoin’s value going down to as low as US$28,000.

 

Is the Doomsday Near?

Probably not! Despite the ongoing crisis, experts say that there is very little chance that Bitcoin’s price might crash. Although the Russia-Ukraine conflict on the cryptocurrency market is unexpected, it shows no sign of wiping out the decentralized ecosystem. But this is not the only reason digital tokens are facing a plunge in recent times. Since the Federal Reserve’s tightening policy news came out, Bitcoin was facing uncertainty. With the possible interest rate rise, the situation got even worse.

But this doesn’t mean Bitcoin is going to zero. Even when the global scenario is worsening and taking a toll on the cryptocurrency market, the underlying technology is being cherished. However, it is creating a disconnect that nobody expected. From the very beginning, the success of Bitcoin paved the path for blockchain to grow. Today, the technology has reached an extent where advanced features like DApps, smart contracts, NFTs, etc are taking distinct shapes. Therefore, the growth of cryptocurrency is divided across many applications.

 

Key Decisive Price Levels

After encountering massive cryptocurrency blows, analysts are coming up with technical analysis to figure out where Bitcoin will find a support level. Currently, Bitcoin is on the liquidity level between US$37,000 and US$38,000, indicating that people are still interested in it. However, it is struggling to get a stable ground at US$40,000, which is very crucial.

According to some experts, there are two major test levels namely US$33,000 and US$28,000. If Bitcoin’s price falls below the US$28,000 mark, it might clearly indicate a ‘crypto winter’ ahead. However, the last time we encountered a crypto winter, the situation was even worse. Within 5 months, BTC’s value plummeted by more than 80%. But enthusiasts say that such a situation is very unlikely.

 

What Should Investors Expect from This?

Bitcoin investors should first embrace the fact that digital tokens are extremely volatile and they might serve anything on your plate. Ruinous and government policy changes aside, investors can expect that the prices of Bitcoin and other digital assets will increasingly move in correlation with the prices of traditional assets. Although unfamiliar cryptocurrencies might now follow this, top digital tokens like Bitcoin and Ethereum have a high chance of opting for the correlation.

But as told before, Bitcoin reaching zero or hitting rock bottom is impossible, at least for the time being. However, more regulations and geopolitical changes might have a massive impact on the whole cryptocurrency market from now on.