Did Putin just hammer the Bitcoin price?

The Bitcoin (CRYTPO: BTC) price is down more than 6% over the past 24 hours, currently trading at US$35,475 (AU$49,192).

It’s no secret why.

Russian-Ukrainian tensions nearing the boiling point

The geopolitical situation in Eastern Europe has turned sharply towards the negative today.

In the latest move roiling crypto and share markets alike, Russian President Vladimir Putin authorised special operations of Russian forces in Ukraine’s separatist Donbas region.

Many Western analysts are warning of the potential of an all-out war, though Putin told Russian TV that his nation has no intentions to occupy Ukraine.

But that’s done little to placate investors.

Alongside a tanking Bitcoin price, the S&P/ASX 200 Index (ASX: XJO) is down a gut-churning 3.1% in afternoon trading.

Risk assets, like many tech shares, are taking the brunt of the beating, witnessed by the 5.4% intraday crash of the S&P/ASX All Technology Index (ASX: XTX).

Bitcoin price tumbles as investors de-risk

Addressing the headwinds hammering the Bitcoin price of late, Josh Gilbert, crypto analyst at multi-asset investment platform eToro, told the Motley Fool:

Investors will generally rotate out of perceived risky assets when uncertainty arises. That’s why we’ve seen assets such as bitcoin and some tech stocks come under pressure over the last week.

Indeed, the Bitcoin price is now down 19% since this time last week.

And Gilbert believes there could be more short-term pain ahead:

In my opinion, it seems that investors are positioning themselves for further downside in cryptoassets. Investors are now leaning towards safe havens such as gold to overcome this short-term uncertainty.

Investors certainly appear to be on the hunt for havens, like gold.

While the ASX 200 is crumbling today, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is up 3.7%. (You can find more on today’s ASX gold share moves here.)

“For those investors worried about the potential impacts that the political tension between Russia and Ukraine may cause, it’s important they reflect on their own risk tolerance and investment strategy,” Gilbert continued.

However, he told us he doesn’t believe this will have a long-term impact on the Bitcoin price and wider crypto markets:

If they’re investing in crypto as a long-term investment, this short-term blip doesn’t affect its long-term goal of changing the financial industry and essentially being the future of payments.

Historically, most geopolitical crises have had minimal long-term global market repercussions, and the threat is usually more significant than the event itself.

And Gilbert touted the vital role cryptos can play during heightened global volatility.

“Even if banks are closed and local currencies fall in value during times of instability, citizens will still have access to capital through crypto,” he said.

Though with the Bitcoin price down 25% so far in 2022, they may find less capital then they were hoping for.

The post Did Putin just hammer the Bitcoin price? appeared first on The Motley Fool Australia.

More reading

• Sanctions are a good thing? Why Bitcoin, Ethereum, and Dogecoin are recovering nicely today
• Down 14% in a week, where to next for the Bitcoin price?
• Have Bitcoin price falls cemented gold as the best safe-haven asset?
• Why Bitcoin, Ethereum and Dogecoin plunged this weekend
• The Bitcoin price just fell 8%. What’s going on?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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