Daily Management Review

Bitcoin falls to two-week low


On reports that Russia has recognized the Luhansk and Donetsk Peoples Republics, Bitcoin plummeted to a two-week low of $36,350. Bitcoin has long been seen as a safe haven asset capable of maintaining a consistent price in the face of market volatility.

Dmitry Shustov
Dmitry Shustov
Because of escalating tensions between Russia and Ukraine, Bitcoin and other cryptocurrencies are becoming more affordable. Bitcoin sank to $36,350 in morning trading on February 22nd, its lowest level in more than two weeks. According to data from major cryptocurrency exchange Binance.com, the world's largest cryptocurrency recovered its losses and traded at $37,534. The decline was 1.93 percent in just 24 hours.

Ether, the second most valuable cryptocurrency, was trading at $2583, down 3.47 percent.

CNBC polled analysts, who blamed the dip in cryptocurrencies on Russian President Vladimir Putin's decision to recognize the Donetsk and Luhansk People's Republics and ensure their protection, as well as a slump in global stock markets.

According to the channel, Bitcoin proponents frequently market the cryptocurrency as a safe haven asset, comparable to gold, that helps safeguard assets in times of uncertainty. However, as more institutional investors begin to trade Bitcoin and the cryptocurrency becomes increasingly tied to movements in traditional markets, such as equities, such arguments in favor of "digital gold" are eroding.

source: cnbc.com