Crypto Markets Dips as Tensions Between Russia and Ukraine escalate

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Crypto Markets Dips as Tensions Between Russia and Ukraine escalate
Crypto Markets Dips as Tensions Between Russia and Ukraine escalate

Most Cryptocurrencies fell on Friday as traders reacted to geopolitical risks from Russia and Ukraine.

US President Withdraw Troops From Russia

According to a report on February 11, US President Joe Biden urged Americans to leave Ukraine immediately, warning that “an invasion could begin at any time.” Despite Russian military activities, the US has ruled out sending troops to Ukraine for the time being.

Bitcoin (BTC) is down 2% over the past 24 hours, while ETH is down 5% and SOL is down 9%. Equities were also lower, while traditional safe-haven assets such as gold and the US dollar rose. 

Technical indicators are mostly neutral for Bitcoin with support at $35-40k and resistance at $46k.

Analyst Jason Pagoulatos of crypto research firm Delphi Digital said that over the past 10 days, most of the trading volume has been between $41,000 and $41,500 in BTC. “If that level is lost, we could move towards the remaining volume gap, which happens to coincide with $38,500.”

Bitcoin Dominance Rises As Crypto Market Falls

This week, Bitcoin’s market cap increased by more than 40% compared to the total cryptocurrency market cap. Typically, traders accumulate bitcoin during market downturns as the risk is lower compared to alternative cryptocurrencies (altcoins).

During the 2018 crypto bear market, BTC dominance surged from a 35% low to a 72% high. Over the past year, the ratio is down 30 percentage points as altcoins have risen more than bitcoin.

Some analysts expect Bitcoin to remain under pressure for several more months. “Bitcoin took about six months to recover from last spring’s fall,” Bitcoin holding company NYDIG wrote in this week’s newsletter. “A similar timeline for the current drawdown will set a recovery date sometime in May.”