Bitcoin’s price saw upward trend end March ’22, but collapsed during the yr

In times of geopolitical instability, Bitcoin has historically experienced significant volatility, as financial market investors shift their liquidity towards safer assets – including riskier crypto assets, reports Al-Jarida daily.

Russia invaded Ukraine on February 24, 2022, when the price of Bitcoin was around $39,000 – down from around $44,500 just one week before the start of the war.

The downturn caused by the impending invasion of Ukraine has stoked risk aversion and uncertainty among investors. By March 1, 2022, Bitcoin’s price had almost fully recovered, reaching about $44,000.

After peak volatility, Bitcoin’s price saw an upward trend towards $48,000 at the end of March 2022, but it steadily collapsed during the year – starting in 2023 at around $16,600.

Hamas attacked Israel on October 7, 2023, when the price of Bitcoin was around $28,000, and in contrast to the Russian invasion of Ukraine, the price of Bitcoin fell less than 6% to approximately $26,500 over the next five days.

By October 25, 2023, Bitcoin’s price had reached $35,000, only to tumble nearly 5% by October 27, 2023, when Israel invaded Gaza. Bitcoin’s price is in stark contrast to the price fluctuations of 2022, with Bitcoin surpassing $40,000 by early December 2023, and going on to surpass $73,000 for the first time on March 12.

In light of the retaliatory attack on Israel by Iran - the price of Bitcoin fell from its highest levels of $67,000 just hours ago to its current lowest levels of $62,000 at the time of writing, according to what “Coin Market Cap” reported and viewed by “Arabian Business.”

As geopolitical tension escalates, the sell-off in market risk assets is likely to continue, as liquidity seeks safer havens as a store of value.

However, interestingly, gold -- usually considered a safer store of value - saw a sharp decline in price, losing about $100 per ounce over the past five hours.

Moreover, this decline may be indicative of a more widespread sell-off as investors move away from multiple asset classes or recoup losses.

The coming months are likely to be the result of a panic response to the immediate global economic fallout, and now appear to be setting a bleak outlook for a bearish start to the summer.

The 2024 Bitcoin halving is less than a week away – with many miners preparing to halve their profits – the timing of this geopolitical event makes the coming crypto storm perfect.