Cryptocurrencies have also been affected by geopolitical developments in Russia and Ukraine. Referring to Coinmarketcap, as of 18.40 WIB yesterday (24/2), biitcoin was at US$ 35,109.01 per BTC, down 18.7% in a week. Ethereum (ETH) has the same fate. The cryptocurrency with the second largest market capitalization fell 23.02% in the past week to US$2,352.06 per ETH. Tokocrypto trader Afid Sugiono said, in the short term, the development of the conflict between Russia and Ukraine will affect the crypto market.
The overall decline in the crypto market can be seen as a knee-jerk reaction to rising tensions between Ukraine and Russia. "If there was a war between the two largest crypto hubs in the world, it could raise bitcoin's hash rate, and this fear puts pressure on the crypto market. At the same time, the crypto market is still responding negatively to the tightening of US monetary policy. Market participants are also reducing positions in crypto.
Luno Indonesia Country Manager Jay Jayawijayaningtiyas said bitcoin trading volume fell to its lowest level in 14 months. Market participants assess the risk in the market is very high. This can be seen from the movement of the Crypto's Fear & Greed index. Yesterday, the index was at position 23, indicating the market is in a position of extreme fear. In fact, the previous week, this index had returned to a neutral level at 52. "Most investors chose to move assets to lower-risk assets such as gold, stablecoins, or cash.
CryptoWatch co-founder Christopher Tahir said the crypto market has the potential to improve again if US financial authorities approve the issuance of Spot Bitcoin ETFs. The price of bitcoin had penetrated US $ 34,500 per BTC. Christopher and Afid predict the next bitcoin support at US$ 32,000 per BTC. Meanwhile, Jay assessed that Bitcoin's strong support was at the level of US$ 34,000, then at the level of US$ 28,000-US$ 30,000. While Ethereum support is at US$ 2,200-US$ 2,300.