Major coins showed strength on Thursday evening despite the invasion of Ukraine by Russian forces on a preceding day. The global cryptocurrency market cap rose 1.4% to $1.8 trillion.
| Bitcoin (CRYPTO: BTC) | 4% | -5.3% | $38,368.05 |
| Ethereum (CRYPTO: ETH) | 1.4% | -9.5% | $2,609.72 |
| Dogecoin (CRYPTO: DOGE) | -2.7% | -11.2% | $0.12 |
| Terra (ANC) | +20.9% | $3.45 |
| Waves (MKR) | +11.7% | $1,915.31 |
| Terra (LUNA) | +10.7% | $64.84 |
Why It Matters: Risk assets rose on Thursday even as war raged in Eastern Europe. The Nasdaq and the S&P 500 ended the day’s session 3.34% and 1.5% higher at 13,473.59 and 4,288.70.
Cryptocurrency trader Michaël van de Poppe tweeted that the panic “is over” for the coming few days or weeks. He also saw a considerable upside to the so-called altcoins.
“Markets reacting in a sense that [Gold] is going to correct, risk-on assets like equities and [Bitcoin] are going up,” said Van de Poppe.
Honest view; panic is over for a few days/maybe weeks.At press time, April 22 Gold COMEX futures traded 0.55% lower at $1,915.60. Spot gold traded 0.43% higher at $1,911.28.Markets reacting in a sense that #Gold is going to correct, risk-on assets like equities and #Bitcoin are going up.
Potentially runs of 20-45% on #altcoins to happen.
— Michaël van de Poppe (@CryptoMichNL) February 24, 2022
However, Bitcoin analysis Twitter (NYSE:TWTR) handle Plan B said that most investors see the apex coin as a tech stock akin to Google (NASDAQ:GOOGL) or like a meme stock, not as a commodity or digital gold.
#bitcoin down, gold up. Seems most investors see bitcoin as a tech stock like Google or meme stock, not as a commodity / digital gold. pic.twitter.com/e56kuqbaIBEdward Moya, senior analyst with OANDA, pointed out that Bitcoin “continues to act like the ultimate risky asset, tumbling hard after Russia launched an attack against Ukraine.”— PlanB (@100trillionUSD) February 24, 2022
“If Bitcoin can hold onto the $30,000 level over the short-term, that would likely mean investors are still upbeat about the economic outlook and that risky assets should stabilize once the Russian/Ukraine crisis impact is better understood,” wrote Moya, in a note seen by Benzinga.
Moya said that many institutional investors could abandon BItcoin if a fear of recession grips Wall Street over the coming 24 months.
Journalist Colin Wu tweeted, citing data from Laevitas, that the put/call ratio for Bitcoin options expiring on Feb. 25 rose to 2.18 after Russia declared war.
“Investors were buying short-term put options. As of now, a total of 137m of Bitcoin put options expiring on February 25 have been traded today,” wrote Wu.
The Put/Call ratio for bitcoin options expiring on Feb. 25 surged to 2.18 after Russia declared war, according to Laevitas , investors were buying short-term put options. As of now, a total of 137m of Bitcoin put options expiring on February 25 have been traded today. pic.twitter.com/OuEBfMzc9kNotably, a put-call ratio in excess of 1 indicates bearish sentiment building in the market.— Wu Blockchain (@WuBlockchain) February 24, 2022
Read Next: As Ukraine's Wealthy Scrambled To Buy Crypto Ahead Of Russian Invasion, Tether Became More Valuable Than Dollar
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga