Can bitcoin still be used as a hedge despite the global market and cryptocurrency selloff?
Following Russia’s invasion of Ukraine, the global stock market collapsed, and the crypto market followed suit. The invasion of Ukraine by Russia has depleted the market value of cryptocurrency by about $200 billion, with Bitcoin falling below $40,000 for the first time. While the broader selloff is a reaction to the market reaction, which saw futures fall after the attack in Ukraine began early in the morning.
According to CoinMarketCap, the total market capitalization of all cryptocurrencies is currently about $1.56 trillion, down from a high of $1.77 trillion just 24 hours ago. Many of the crypto industry’s most well-known and well-known cryptocurrencies are also in the red.
Bitcoin is currently trading at little over $35,400, down over 18% in the last week and 9% in the last 24 hours.
Ethereum, the second-largest cryptocurrency by market capitalization, is currently trading at $2,370, down over 12% on the day and 22% in the last week.
In the midst of Russia’s military incursion against Ukraine, the crypto market has fallen in lockstep with the wider financial market.
Russian stocks have lost more than $250 billion in value as the country’s economy struggles under the weight of international sanctions.
Following the ruble’s plunge to lows not seen since 2016, the Bank of Russia has decided to engage in the foreign exchange market to help stabilize the Russian economy, according to a statement from the central bank.
The Bank of Russia will provide 1 trillion rubles ($11.5 billion) in liquidity to the country’s banks as part of its broader operations.
According to Bloomberg, the MOEX Russia Index, the Russian stock market’s major ruble-denominated benchmark, has likewise plunged around 50% from its record high in October of last year.
Global markets have been affected as well; the S&P 500 and Nasdaq 100 in the United States are down 1.8 percent and 2.6 percent, respectively.
Gold hit a high of $1,942 per ounce this morning, indicating that money is flowing into classic safe havens.
This is a nearly 2% gain over the previous day, and the highest level since late 2020.