With the escalation of the conflict between Russia and Ukraine and the entry of Russian Federation troops into the DNR and LNR, Bitcoin could retreat to $18,000. The crypto market and stock markets reacted sharply to yesterday's escalation of the conflict and started to drop.
Bitcoin and many other altcoins have begun a total decline over the past 24 hours, with digital gold falling below the support level of $37,000.
The total capitalisation of the entire crypto market lost more than $100 billion overnight and fell by about 6%. World leaders have taken a very negative view of the growing conflict and have already prepared a package of sanctions.
There is panic in the crypto market, but many crypto-enthusiasts have backed Ukraine and said a full-fledged, long-awaited bear market has finally arrived.
They believe that now that Bitcoin could fall by half and there would be an ideal entry point for all those who didn't buy it in time.
The author of the Black Swan theory, Nassim Taleb, compared the situation of escalating conflict to the old adage "Hannibal at the Gates", which puts fear into the enemy. In this case, the adage applies to both the cryptocurrency market and the stock market.
Taleb believes that in this extraordinary situation, Bitcoin is the opposite of a major hedge asset and safe haven. Unfortunately, the cryptocurrency market will continue to react very sharply and prickly to the escalating geopolitical situation in Ukraine.
Ethereum founder Vitalik Buterin has also called on the countries for peace and does not support an escalation of the conflict. Buterin believes that an imminent conflict could cause immeasurable damage to the two countries and to humanity as a whole.
Many stablecoins and altcoins could see their prices sag significantly, while new cryptocurrencies will fade into the shadows and stop gaining. Bitcoin currently trades at $37,800.
However, many analysts are confident that this is just the beginning of a downward rally, which will be bolstered by rising inflation, a possible all-out war, and a fall in the Asian stock market.
Aaron Chomsky, Head of Investment Department, ICB Fund, believes bitcoin can drop as low as $17,000-18,000 and stay at that level for at least 3 years. This could be the last ideal buying opportunity for all those who haven't made it sooner.
