Bitcoin crashes as investors favour Gold amid Russia, Ukraine war

Russia’s invasion of Ukraine’s territory is favouring Gold, while dragging bitcoin down, as investors’ confidence dropped in the cryptocurrency market, but rose in the traditional asset.

In the early hours of Thursday, the price of Gold ounce hit its highest value this year, with investors trading at $1,949.80. This put the asset’s year-to-date growth at +8.23%.

Gold gained $148.4 within one month and 24 days, having taken the backseat in the last two years following the bullish run of bitcoin since the outbreak of COVID-19 two years ago.

Although the price of Gold ounce has rolled back to $1,945.03, dropping -0.2% below its highest value of $1,949.80 in the last 24 hour – the growth reported today was enough to reflect the migration of crypto investors to Gold market.

READ ALSO: Institutional investors cause bitcoin’s overvaluation —Expert

With the switching of asset classes in investors community, bitcoin has suffered from the ripple effect of the migration occasioned by Russia’s President, Vladimir Putin, stating that it will begin a “special military operation” in Ukraine.

This has encouraged sell off among bitcoin holders trying to protect their investment through safe haven asset, and this has resulted to -8.24% dip in BTC, which is now priced at $35,658.50, at the time of filing this report.

Ripples Nigeria noted that as Gold head for the moon, bitcoin is declining, depreciating by -23% year-to-date, with the market (BTC holders) losing $10,653.24 within January to February this year.

Possibility of the sell off extending into March is high, considering reports of explosion and fire exchange in Ukraine, as Russia presses forward despite UK, US, Japan, Canada sanctions, with NATO also expected to take action.

The budding war between Ukraine and Russia is expected to negatively affect the asset classes or securities markets, but Gold seem to be weathering the storm, as it does during World Wars.

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