Bitcoin, Ethereum, Dogecoin Show Signs Of Recovery — Why The Russian Invasion Of Ukraine Has Cast A Doubt On The Apex Coin's 'Digital Gold' Thesis

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.


Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD 4% -5.3% $38,368.05
Ethereum ETH/USD 1.4% -9.5% $2,609.72
Dogecoin DOGE/USD -2.7% -11.2% $0.12
Top 24-Hour Gainers (Data via CoinGecko)
Cryptocurrency 24-Hour % Change (+/-) Price
Terra (ANC) +20.9% $3.45
Waves (MKR) +11.7% $1,915.31
Terra (LUNA) +10.7% ​​$64.84

See Also: How To Buy Bitcoin (BTC)

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. 

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. 

However, Bitcoin analysis Twitter handle Plan B said that most investors see the apex coin as a tech stock akin to Google or like a meme stock, not as a commodity or digital gold. 

Edward 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.”

“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.

Notably, a  put-call ratio in excess of 1 indicates bearish sentiment building in the market.

Read Next: As Ukraine's Wealthy Scrambled To Buy Crypto Ahead Of Russian Invasion, Tether Became More Valuable Than Dollar

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