By
Bena Ilyas
April 25th, 2024
Bitcoin and the wider crypto market are expected to experience short-term pressures from the geopolitical crisis as the supply chain gets distributed.
The crypto market led by its leader Bitcoin has felt tremors emanating from the Russia-Ukraine crisis after Putin chose war. Bitcoin price is down approximately 15 percent in the past seven days. Amidst the bears and bulls push and pull, the cryptocurrency market is experiencing a high correlation with global geopolitical volatility and uncertainties.
Gold on the other hand is doing pretty well in the past few days despite yesterday’s dip. Gold’s positive performance during the Russia-West crisis showcases its muscles as a preferred asset over BTC. Nevertheless, the latter has outperformed the former in performance in the past decade.
Bitcoin is expected to experience short-term pressures from the geopolitical crisis as the supply chain gets distributed. Moreover, the Biden administration, the EU, and the UK are preparing to impose more sanctions.
According to market data provided by Binance-backed Coinmarketcap, Bitcoin exchanged hands around $37,664. The asset is down approximately 14.99 percent in the past seven days. The market cap is at $711 billion, the past 24 hours volume stands at $33.74 billion, and the total circulating supply is at 18.96 million.
The crypto market cap has also experienced a drop of approximately 2.73 percent after over $200 billion was liquidated in the past 24 hours. Currently, the entire crypto market cap stands at around $1.69 trillion.
The crypto market cap and prices are expected to feel more pressure in the short term as the oil industry, which affects the crypto mining industry, likely gets disrupted should Russia fully invade Ukraine.
The Fed’s operations and developments are significantly affecting crypto prices both directly and in the industry. Investors now have a wider field to cover with similar scope, thereby making investments riskier than before.
More Questions in Crypto Market
The crypto market is trading down double-digit percent from its all-time high. Volatility is high, consequently, daily traders are enjoying more gains and losses, whilst hodlers feel the pressures of a looming yearly bear market.
The uncertainty on the macroeconomic basis has raised more questions in crypto investors’ minds than ever before. Nevertheless, possibilities of diplomacy have fixated the crypto market at a consolidation level on a near-term horizon.
Bitcoin continues to rely on electricity for mining operations that protect the whole ecosystem. Its future success heavily relies on the electricity industry that currently utilizes both renewable and non-renewable energy sources.
Otherwise, Ethereum is down 1.7 percent in the past 24 hours, while BNB lost 1.3 percent in the past 24 hours.