The price of the most common cryptocurrency fell in the lowest two weeks. During Tuesday morning, Bitcoin depreciated six percent in the day-to-day comparison, while Ethernet depreciated another two percentage points more. Cryptocurrencies such as SOL and XRP have lost over thirteen percent. Some experts in response to the events at the cryptotrout question the perception of bitcoin as a digital alternative to gold. The precious metal, unlike bitcoin, is strengthening in response to Russia’s escalating aggression against Ukraine. “It seems that bitcoin will not act as a safe haven in times of geopolitical crises. The correlation between the evolution of the value of ‘digital’ and analogue gold is now even negative. ” states economic expert of the German newspaper Die Welt Holger Zschäpitz.
“During the current turbulent events between the United States, Russia and Ukraine, bitcoin has quietly weakened and lags far behind its archival rival,” said John Rogue of 22V Research, according to Bloomberg.
While the price of gold may exceed its historical highs above two thousand dollars per ounce due to uncertain world events, bitcoin is said to be in danger of falling below the level of thirty thousand dollars.
Antoni Trenchev, co-founder of the Nexo platform, which specializes in brokering loans through cryptocurrencies, has a similar view. “The inability of bitcoin to stay above the $ 40,000 level, together with the increase in tensions in Ukraine, is returning to the $ 30,000 mark. This time, geopolitics, not inflation, appears to be the main driver of both traditional and cryptocurrency markets, ”says the businessman, who expects a significantly increased demand for cryptocurrency if bitcoin drops to $ 30,000. This would repeat the scenario from the end of January.
Recall three basic principles of bitcoin operation:
However, this would not automatically guarantee a strong recovery of cryptocurrencies and overcoming last year’s highs. Concerns about the onset of the so-called cryptosime, a more persistent period of decline, are increasingly being raised in the virtual coin market. For example, according to co-founder of the cryptocurrency exchange Huobi Tu Tuna, another phase of strong growth may occur in two or three years.
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