Russia’s attack of Ukraine’s territory is helping gold while hurting bitcoin, as investor confidence in the cryptocurrency market fell while it rose in the traditional asset.
The price of a gold ounce reached its highest level this year in the early hours of Thursday, with investors trading at $1,949.80. This brings the asset’s year-to-date growth to +8.23%.
Gold gained $148.4 in one month and 24 days after taking a back seat in the last two years due to bitcoin’s bullish run since the outbreak of COVID-19 two years ago.
Although the price of a gold ounce has fallen to $1,945.03, a -0.2 percent drop from its peak of $1,949.80 in the last 24 hours, the growth reported today was sufficient to reflect the migration of crypto investors into Gold Market
With the shifting of asset classes in the investor community, bitcoin has suffered from the repercussions of Russia’s President, Vladimir Putin, announcing a “special military operation” in Ukraine.
This has encouraged bitcoin holders to sell in order to protect their investment through a safe haven asset, resulting in a -8.24 percent drop in BTC, which is now priced at $35,658.50 at the time of filing this report.
Ripples Nigeria reported that while gold is rising, bitcoin is falling, depreciating by -23 percent year to date, with the market (BTC holders) losing $10,653.24 between January and February of this year.
The possibility of the sell-off extending into March is high, given reports of explosions and firefights in Ukraine, as Russia presses ahead despite sanctions imposed by the UK, US, Japan, and Canada, with NATO also expected to intervene.
The escalating conflict between Ukraine and Russia is expected to have a negative impact on asset classes and securities markets, but gold appears to be weathering the storm, as it did during World Wars.