Bitcoin price extends fall under $40,000 as Ukraine crisis boosts gold price

    Bitcoin price dropped to a more than two-week low, tumbling along with equities, even as gold price soared over Ukraine crisis.

    By: BLOOMBERG
    | Updated on: Aug 22 2022, 10:07 IST
    Bitcoin
    Bitcoin price dipped below $40,000 level over the weekend and kept weakening as the Ukraine crisis deepened.  (Bloomberg)
    Bitcoin
    Bitcoin price dipped below $40,000 level over the weekend and kept weakening as the Ukraine crisis deepened.  (Bloomberg)

    Bitcoin price dropped to a more than two-week low, tumbling along with equities as escalating tensions between Russia and Ukraine weighed on risk appetite. The largest cryptocurrency dropped as low as $36,831 on Tuesday morning in Asia after Russian President Vladimir Putin said he's recognizing two self-proclaimed separatist republics in eastern Ukraine. 

    Bitcoin price dipped below $40,000 level over the weekend and kept weakening as the Ukraine crisis deepened, undermining the argument that cryptocurrencies are a haven in times of geopolitical turmoil. At the same time, gold has reached its highest level since June.

    “In the globe's latest maelstrom -- U.S./Russia/Ukraine -- Bitcoin, the asset purported to be the answer to every question, has quietly weakened and is notably underperforming its arch-enemy, gold,” said John Roque of 22V Research in a note on Monday.

    Roque predicted Bitcoin may fall below $30,000 as traders increasingly favor gold, potentially pushing bullion to an all-time high. 

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    First Published Date: 22 Feb, 14:00 IST
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