The movement of cryptocurrencies is fairly mediocre this week, even the increase in the price of bitcoin is still inferior to world gold.
Launching data from Coin Market Cap, bitcoin trading on Saturday (12/2) at 11:23 WIB was in the range of US$ 42,414.19/coin or weakened 2.05% in the last 24 hours. Meanwhile, in the last 7 days, it rose only 2.02%.
For crypto assets with high volatility, a gain of 2% in a week is small. Compare this with gold, which rose 1.75% on Friday’s trading, and during the week rose more than 2.8%.
Bitcoin is often referred to as digital gold, so it is often compared to gold. The increase in gold itself occurred due to the possibility of Russia attacking Ukraine in the next few days.
Yesterday, Jake Sullivan, the White House’s national security adviser, said Russia was likely to attack Ukraine in a matter of days. He also advised Americans residing in Ukraine to leave the country.
“Americans residing in Ukraine must leave the country immediately, under all circumstances, within the next 24 to 48 hours,” Sullivan said.
He also said there were various possibilities of a military strike that Russia would carry out, and that it might start from an air strike.
“I can’t predict with certainty what kind of military attack will be carried out. As I mentioned earlier, the possibilities of an attack are limited, or it could be more expansive, but will most likely involve the seizure of some territory in Ukraine, major cities, including the capital. city,” added Sullivan.
“Gold is getting an inflow of safe-haven demand because we see geopolitical risks out there and concerns about the impact of high interest rates on economic growth,” said Chris Gaffney, president of world markets at TIAA Bank. 2).
History also shows that gold tends to strengthen during wars. So what about the digital gold aka bitcoin? Can this most popular cryptocurrency compete with gold?
It is not yet certain how bitcoin will react in the event of a war. In 2014, Russia also invaded Ukraine, but at that time bitcoin and other crypto assets were not as popular as they are today.
But for sure, the Russian invasion of Ukraine could have a bad impact on crypto assets. This is because Ukraine is positioning itself as a global crypto hub.