Despite Recovery, Bitcoin and Cryptos Have More Room to Fall, Say Analysts, Pointing at a Buy Signal
While the crypto markets have been recovering on the second day of Russia's attack on Ukraine, crypto industry insiders have warned that digital assets may have further to fall -- and argued that a bottoming in stocks could be taken as a buy signal for crypto.
The crypto market saw a broad recovery Friday morning in Europe, as more observers touted cryptoassets’ role as censorship-resistant money in the face of Russia’s invasion of Ukraine.
At 12:47 UTC on Friday, bitcoin (BTC) was up nearly 10% for the past 24 hours, trading at USD 38,926. At the same time, ethereum (ETH) was up more than 12%, trading at USD 2,684. The two most valuable cryptos remain down by 4% and 7%, respectively, over the past week.
The gains for the crypto market today came after nearly all risk assets fell sharply yesterday as Russia launched a full-scale attack on Ukraine.
Just as yesterday, the traditional safe haven, gold, rose again today, trading up by 0.26% for the day to USD 1,909. The relatively minor gains today come after the yellow metal yesterday exploded higher to reach above USD 1,970 – a level not seen since September 2020.
Commenting on why bitcoin was falling and gold was rising in the face of war in Ukraine, the popular bitcoin on-chain analyst Willy Woo suggested the selling is temporary, with bitcoin for now remaining an “untested” safe haven.
Meanwhile, Mikkel Morch, Executive Director at Digital Asset Fund ARK36, stressed that BTC not only erased all Thursday's losses, but it also, in contrast to major stock indices, BTC hasn’t actually recorded a lower low.
"This small detail could be of great significance in terms of the talk around bitcoin as a safe haven asset. Following yesterday’s selloff, many commentators noted that gold
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