Ruble to Near 6-Year Low, Bitcoin to $36,400 After Geopolitical Conflict

Bitcoin (BTC) fell to new lows on Feb. 22 as Russia’s invasion of Ukraine sparked more market woes.

As Bitcoin Volatility, Gold Comes to the Savior

Bitcoin hit $36,400 against the U.S. dollar on Tuesday night, its lowest level since Feb. 3, according to data from Cointelegraph Markets Pro and TradingView.

Russian President Vladimir Putin gave a speech for nearly an hour on the state of the conflict in Ukraine, which was very volatile. Putin eventually recognized two separate republics in eastern Ukraine and then ordered Russian troops into Ukrainian territory.

Stocks and risk assets fell as a result, predictably affecting Russian businesses as tensions over all-out war escalated.

The Russian ruble also fell, falling below the 80-ruble mark to the dollar and approaching its all-time low of 85.6 hit in 2016. Sanctions from the West are expected later in the day to further exacerbate losses.

One unexpected winner was gold, which, unlike bitcoin, managed to avoid losses to bolster its safe-haven status.

“It doesn’t look like Bitcoin will be a safe haven from a geopolitical crisis,” echoed market commentator Holger Zschaepitz.

“Digital gold (bitcoin) has plummeted below $37,000 while gold has risen above $1,900/oz. The correlation between digital gold and gold analogs is now even negative. About digital gold being the better escape The claims of the manner have not been confirmed in Ukraine."

Year-to-date, XAU/USD is up over 6% at the time of writing, while BTC/USD is down 23%.

Cointelegraph contributor Michaël van de Poppe retorted: “Gold has done very well in this time of deep uncertainty, trending slowly upwards, while risky assets such as stocks and Bitcoin have had a tough time.”

Zschaepitz added that investment in gold-backed exchange-traded funds (ETFs) had been on the rise throughout February.

On-chain indicators looming in bearish crossover

Russia thus took center stage for bitcoin traders, who watched with dismay as dark clouds hung over Asian markets on Monday.

Tech stocks tumbled amid a fresh regulatory crackdown in China, sending some of the biggest stocks trading sharply lower for two straight days, including Tencent.

“$39,600 is now the new key resistance level that Bitcoin bulls must move back above,” popular analyst Matthew Hyland said on Tuesday.

He added that the moving average convergence/divergence on the three-day chart is now poised to form a bearish crossover, which is in direct contrast to previous expectations that a bullish breakout could lead to renewed Bitcoin price strength.

Sentiment has also been hit by recent events, with the cryptocurrency fear and greed index falling to 20/100, well within the "extreme fear" range.