In Feb 2022, the price of Bitcoin and other altcoin cryptocurrencies sank due to an escalation in Russia-Ukraine tension. The fall in price has many people perplexed, but others believe it to be a logical outcome of a hostile world event. Of late, Bitcoin proponents have vouched for the coin and compared it with gold, but is it really what people are saying it to be? Let’s closely look at the events and how they unfolded, and what top experts have to say about another bull run for the first cryptocurrency.
How the Events Unfolded after Russia-Ukraine Tension Mounted?
Ukraine and Russia’s tussle had a direct impact on cryptocurrency prices. Most cryptos are down with Cardano, Ether, and Bitcoin losing out big time. The price of Cardano fell by 4.3%, Bitcoin went under $37,000 after two weeks of a gradual rise, and ETH price decreased by 1.4%.
After Putin’s orders to send his troops into eastern parts of Ukraine, the tension in the world reached a new high. But it also meant a new low for cryptocurrency prices. As the chances of a Russia-Ukraine war are high, the risk of cryptocurrency prices decreasing is also rising.
Despite Bitcoin being vouched by some of the most prominent personalities in the world, its price also took a 0.5% hit after the escalation of tension. The sharp decline came right after a Tweet by the third-richest man in Brazil who compared Bitcoin to gold and advised people to keep hold of it.
Thanks to institutional investments, many industry experts have predicted that Bitcoin will behave like conventional market entities like stocks. However, the fall in the price of Bitcoin comes as a deterrent to those predictions. It is a complete change in narrative.
For long-time investors, it should be noted that there will be a ‘halving’ event for Bitcoin in 2024. During this event, the rewards for miners would be lowered. Due to a lack of incentive in mining, the supply of new Bitcoins will be squeezed. Experts say it is only after the 2024 event that we are likely to see a fresh bull run.
Bitcoin and other altcoins have seen a significant decline at the start of the year. But with some stabilization in Feb 2022, many started believing that the price would pick up. However, the tension between Russia and Ukraine has ended the bull run. As per analysts and experts, we can expect a proper bull run for Bitcoin in 2024 when the incentives for Bitcoin mining are reduced, consequently, lowering its production.