Bitcoin dips 12% as Russian ruble hits all-time low against USD on Ukraine ‘military operation’

As geopolitical tensions rose in Europe, Bitcoin (BTC), fell to $34,300 overnight February 24.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

BTC price outlook: “Arguments both way”

According to TradingView and Cointelegraph Markets Pro, news that Russia had launched a “specially military operation” in Ukraine sent BTC/USD plummeting along with other traditional markets.

Markets were taken by surprise when reports began to flow in about a three-pronged attack against Ukraine. The West had already promised more severe sanctions.

Bitcoin was already trading in line to stocks and not acting as a safe-haven. It showed uncertainty by falling 12.2% from Wednesday’s highs to reach $34,300.

Asian stocks already felt the effects of the downturn, with the Hang Seng index in Hong Kong falling 3.5% and Nikkei hitting a 15-month low.

While traders waited for the full impact on the European and American stock markets to be apparent, Bitcoin market participants took stock what the geopolitical events might mean for the largest cryptocurrency.

There are two sides to the story on what should happen to Bitcoin right now. Based on the fundamentals, I don’t think I would have predicted it would fall. It is, however, down a lot! Why?” Sam Bankman-Fried (CEO of trading giant FTX) asked the question in a series tweets on Thursday.

Let’s just say that there are two types of people in the world, algorithm followers and fundamental investors. Fundamental investors assess the situation and decide which direction BTC/USD should go. Algorithm enthusiasts consult the data. What’s the historical trend?

He warned that the Ukraine crisis could have financial consequences for EU neighbours’ financial strength and suggested that alternative strategies may be an option.

BTC/USD was trying to make up some ground after it had fallen below January’s low at $32,800.

Ruble pain faces Russian consumers

In Russia, the central bank said that it will intervene in currency markets following the recent developments which caused the ruble to lose its value.

Similar: Price analysis 2/23 – BTC, ETH and BNB, XRP. ADA, SOL. AVAX. LUNA. DOGE.

The USD/RUB closed at 87 on Thursday after closing at 80 the previous day. MOEX Group, which is behind the Moscow Stock Exchange, has ceased trading.

The consumer exchange rates were much more volatile than the indices, which showed 115 rubles per dollar or more for those who wanted to purchase USD on an open market.

USD/RUB 1-hour candle charts. TradingView

Alex Gladstein, the chief strategy officer of the Human Rights Foundation, reacted to this criticism by ridiculing the political apparatus that is fiat money.

He wrote, “Sickening that leaders abuse their power over Fiat currencies — which all their citizens rely upon and earn in –for war.”

“Whether it’s national credit cards, printing presses, or, in this instance, taking action that could be punished by international markets.

Sources reported that the central bank in Ukraine took steps to prohibit foreign currency cash withdrawals.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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