Bitcoin dips to $36.4K as Ukraine move sends Russian ruble to near 6-year lows vs. dollar

Bitcoin (BTC), which fell to new lows on February 22, as market turmoil arose from Russia’s planned incursion into Ukraine.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

As Bitcoin falters, gold comes to their rescue

Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD reached $36,400 overnight Tuesday on Bitstamp, its lowest level since February 3.

As Russian President Vladimir Putin spoke for almost an hour about the situation in Ukraine, the mood was volatile. Putin ended his speech by recognizing the two republics that had split from the country’s eastern region and then ordered Russian troops to enter what is officially Ukrainian territory.

As a result, stocks and risk assets fell. Russian companies were expected to suffer as nerves escalated over full-scale war.

The Russian ruble also fell, surpassing the 80-per dollar mark and creeping up on its 2016 record low of 85.6. Later in the day, sanctions from the West were likely to fuel further losses.

Surprise winner: gold. It managed to avoid losses and maintain its safe-haven status, unlike Bitcoin.

Holger Zschaepitz, a market commentator, said that Bitcoin would not be able to provide safe haven during geopol crisis.

“Digital gold (Bitcoin), has fallen to $1900/oz. Correlation between digital & analog Gold is now even neg. The narrative that digital Gold is a better escape route has not been proven true in Ukraine.

BTC/USD vs. Gold/Bitcoin chart. Source: Holger Zschaepitz/Twitter

Year-to-date, the XAU/USD exchange rate was up more than 6%, while BTC/USD traded lower 23%.

“It’s really great to see Gold doing really well during these times of heavy uncertainty, crawling upwards while risk-on assets such as stocks and Bitcoin are having trouble,” Michael van de Poppe, a Cointelegraph contributor, countered.

Zschaepitz stated that gold-backed exchange traded funds (ETFs) had seen an increase in February.

For on-chain metric, bearish cross looms

BTC traders in Russia were thus at the center of attention, as they watched Monday’s storm clouds gather over Asian markets.

Related: Coin days destroyed spike suggests bottom for BTC price Five things to keep an eye on in Bitcoin this week

Two days of severe downside for some of China’s largest equity bets has triggered a tech stock rout.

Popular analyst Matthew Hyland stated Tuesday that “$39.6k” is the new key resistance Bitcoin bulls must overcome.

He added that moving average convergence/divergence on the three-day chart was now primed to print a bearish crossover, in direct contrast to previous hopes that a bullish breakout could precede fresh BTC price strength.

Sentiment was also affected by the recent events. The Crypto Fear & Greed Index dropped to 20/100, well within the “extreme fear” bracket.

Screenshot: Crypto Fear and Greed Index Source: