As investors absorbed more news emanating from Ukraine, investors were in de-risk mode as cryptocurrencies fell over the weekend. Bitcoin fell below $40,000, leading a broad sell-off in the cryptocurrency market.
Nonetheless, by Monday evening, cryptocurrencies started to tick higher again to slightly recoup some losses. The Russia-Ukraine conflict continues to be top-of-mind for investors and will remain so for quite some time as the situation continues to play out.
The markets are taking a breather after a bullish run the past week. Bitcoin pushed closer to the $45,000 price level while Ethereum touched above $3,000 before the latest sell-off.
“Cryptocurrencies have enjoyed a recent surge after Russia’s invasion of Ukraine,” Barron’s reports. “Anonymous digital assets have come back in the spotlight as Ukrainians and Russians alike turn to Bitcoin and other tokens to navigate the economic turmoil that has hit countries rocked by war and sanctions.”
Crypto markets were given the spotlight as a medium of exchange for donations coming into Ukraine to support its military. Nonetheless, analysts reminded the capital markets that they’re still prone to volatile bouts of price movements.
“Bitcoin is still mostly a risky asset, although many will argue it is also a safe-haven given the war in Ukraine,” said Edward Moya, an analyst at broker Oanda.
Technology publication Protocol worked with the Harris Poll to gauge how consumers feel about crypto. In particular, the survey asked over 1,100 adults what their future actions on crypto will be given their current knowledge base.
Given the results, the prevailing narrative is that awareness of crypto is certainly occurring, which can be due to the rising advertising for crypto companies. However, it’s still viewed as a risky, volatile asset by the majority.
“A recent study done on behalf of Protocol by The Harris Poll found that while cryptocurrency is growing in popularity, most still view it as a risky investment,” Protocol reports. “The study also found that most cryptocurrency traders plan to invest more money into the growing market, and that advertisements for crypto-adjacent investment brands drive awareness of the brands more than intent to use their services.”
“Most U.S. adults are aware of cryptocurrency, and a notable sum has invested,” the report adds, noting that over 90% of respondents have heard of the term “cryptocurrency” and just over 50% are familiar with cryptocurrency. “Most current and previous cryptocurrency traders say they plan to invest more money in cryptocurrency in the coming years despite the market’s current instability.”
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