Bitcoin is falling with rumors of an impending war between Russia and Ukraine. The tension also involves the United States and NATO against the Russian invasion.
The problems between the countries have escalated again in recent months, but this Friday reached its peak. A US secretary has declared that Russia could invade Ukraine at any time after the country sends F-15 fighter jets to the region. Neighboring countries have seen Russia reinforce their borders with troops, despite Putin’s thoughts about not overrunning his neighbor.
Embassies have begun banning travel to the region, Japan and US have asked citizens to leave Ukraine immediately. South Korea has also issued a warning not to visit both countries and other European nations like England.
The spark came as Jake Sullivan, the White House national security adviser, warned Friday afternoon that Russia could attack Ukraine “any day now,” with Russia’s military prepared to begin an invasion if ordered by Russian President Vladimir Putin.
U.S. stocks extended a selloff to end sharply lower, with the Dow Jones Industrial Average, down -1.43% dropping more than 500 points and the S&P 500, sinking 1.9%; oil futures, +4.47% surged to a seven-year high that has crude within hailing distance of $100 a barrel; and a round of buying interest in traditional safe-haven assets pulled down Treasury yields while lifting gold, the U.S. dollar, and the Japanese yen.
The Bitcoin reacted with a drop of 4% in the last 24 hours and is again trading at $42K. BNB down 3%, XRP down 4.79%, ADA down 5.91%, and SOL down 7.51% in the last 24 hours. Ethereum falls below 3K, currently trading at $2930.
It’s unclear whether a war will break out in the region or how large it will be, but that assumption has led investors to look for store-of-value assets.
With Bitcoin falling amid rumors of a Russian invasion of Ukraine, Peter Schiff said that only gold is a haven. According to him, whoever buys US treasury bonds will melt their assets as inflation increases even more.
“Investors buying U.S. Treasuries as a safe haven given heightened geopolitical risk are making a big mistake. Inflation pressures will intensify if Russia invades Ukraine, which will further erode the value of bonds. The real safe haven from both threats is gold.”
Investors buying U.S. Treasuries as a safe-haven given heightened geopolitical risk are making a big mistake. #Inflation pressures will actually intensify if #Russia invades the #Ukraine, which will further erode the value of bonds. The real safe haven from both threats is #gold!
— Peter Schiff (@PeterSchiff) February 11, 2022
Leaving behind Bitcoin out of safe haven does not appear appropriate; it is worth remembering that at the beginning of the pandemic, a significant drop occurred in the price of the Bitcoin, which quickly recovered and ended up surpassing gold, dollar, and other assets both in 2020 and in 2021.
The market is following the new Bitcoin market drop closely; however, this may be a simple price correction after days of bullishness.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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