Bitcoin fell by 7% on Thursday, February 24, with the price action sliding below $35.5k. The main reason for such a sharp decline is the geopolitical crisis in Europe, namely Russia’s military operation in the Donbass. As a result, the demand for risk assets turned lower. At the moment, we can see that cryptocurrencies are selling off more sharply than EM stocks, although not as heavily as Russian equities. This confirms the risky nature of cryptocurrency assets and that they are not a substitute for gold.
Ethereum shed 12% to $2,340 over the past 24 hours. Leading altcoins have been showing a proportional decline.
Bitcoin is trading near a key support range, which is at $44-42k. If the bears gain control of the market and the bulls can no longer withstand such an aggressive mood, the crypto market benchmark could trend sluggishly lower as stop loss orders are executed. In the upshot, Bitcoin may well decline to the $40-39k range.
Market news and data
The total capitalization of the cryptocurrency market decreased by 8.4% on the day, to $1.57 trln. The Crypto Fear and Greed Index decreased by 2 to 23.
The wallets of long-term investors (hodlers) show record volumes of BTC (76.5%). The volume of bitcoins, which have been without movement for over 10 years, is also growing (12.6%). Thus, almost 90% of all currently available coins are out of the market.
Another country besides El Salvador may also accept bitcoin as a means of payment. Senator Indira Kempis is drafting a bill on cryptocurrencies and intends to convince the Mexican government to follow the "Salvadorian scenario" by recognizing BTC as legal tender.
Former SEC official Joseph Hall called the department's chances of losing the lawsuit against Ripple high. The regulator accuses the company of selling unregistered securities under the guise of XRP tokens.