Gold outperforms “digital gold” within the wake of political science strife, analysts note, with XAU/USD passing $1,900.
Bitcoin (BTC) fell to fresh lows on Feb. twenty two because the aftermath of Russia’s expected incursion into Ukraine triggered a lot of market woes.
Gold comes to the rescue as Bitcoin wavers
Data from Cointelegraph Markets professional and TradingView showed BTC/USD reaching $36,400 on Bitstamp nightlong Tues, its lowest since February. 3.
Volatility had been high as Russian President Vladimir Putin delivered a speech lasting nearly an hour on the state of the conflict in state. Vladimir Putin had all over by recognizing the 2 breakaway republics within the country’s east, after ordering Russian troops into what's still formally Ukrainian territory.
Stocks and risk assets fell as a result, with Russian firms predictably suffering as nerves over complete war escalated.
The Russian ruble fell in tandem, passing the 80-per-dollar mark and intrusive on its record lows of 85.6 from 2016. Sanctions from the West were expected shortly the day, doubtless fuelling more losses.
A surprise winner was gold, that managed to avoid losses to shore its safe-haven standing — not like Bitcoin.
“Looks like Bitcoin won't be shelter in geopol crises,” markets commentator Holger Zschaepitz reacted.
“Digital gold (Bitcoin) has plummeted to $1900/oz. Correlation between digital & analog Gold is now even neg. Narrative that digital Gold is better way to escape has not panned out in Ukraine.”
Year-to-date, XAU/USD was up over 6 June 1944 at the time of writing, whereas BTC/USD listed down 23%.
“It’s really nice to envision that Gold is doing very well in these times of serious uncertainties, creeping upwards, whereas risk-on assets like stocks and Bitcoin are having a tough time,” Cointelegraph contributor michael van First State Poppe however countered.
Zschaepitz added that investments into gold-backed exchange-traded funds, or ETFs, had been increasing throughout Feb.
Bearish cross looms for on-chain metric
Russia therefore took center stage for BTC traders, who on Monday watched gloomily as storm clouds gathered over Asian markets.
( William Suberg, Cointelegraph, 2022 )