© Reuters.
By Laura Sanchez
Investing.com – The cryptocurrency sector is seeing declines this week, which deepened on Tuesday following news that Russian President Vladimir Putin has sent troops to breakaway regions in eastern Ukraine after acknowledging their independence unilaterally.
Putin’s offensive fueled war fears, which rattled financial markets as traders’ appetite for risk waned.
As we have seen in recent months, far from being seen as a safe-haven asset similar to , cryptocurrencies and cryptocurrencies in general are increasingly going hand in hand with equity markets.
Experts say this is because more institutional investors have started trading bitcoin, and the cryptocurrency is aligning more and more closely with the swings of traditional markets such as stocks.
The world’s largest crypto is now well below the all-time high of over $68,000 recorded in November 2021, and many analysts believe this level will be the highest bitcoin will reach for some time, CNBC reports.
“The challenge for BTC will be to hold the support at $36,670,” notes IG analyst Diego Morin.
For its part, the also lost much of what it had won in recent days. Ethereum was down 8% at the start of morning trading and is now down 5% at $2,500.
Morgan Stanley (NYSE:) called Ethereum a bigger investment risk than Bitcoin. The bank bases its skepticism on the fact that bitcoin has a “single” purpose, while the Ethereum blockchain faces a slew of competitors such as , and others, as crypto analyst Simon Peters explains. -coins at eToro.
“That’s correct. Bitcoin is by far the most powerful crypto for what it does. One could draw similarities to or SHIB, but they’re not really comparable,” Peters notes.
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