The prices of bitcoin , ether and other cryptocurrencies plunged after Russia invaded neighboring Ukraine, a loss in value that challenges the widely held notion that …
The prices of bitcoin, ether and other cryptocurrencies plunged after Russia invaded neighboring Ukraine, a loss in value that challenges the widely held notion that digital currencies can serve as a safe haven. Bitcoin, the best-known cryptocurrency, dropped below the $35,000 level, which cut 8% from its price. Ether, another widely owned digital coin, fell more than 7% to under $2,500. Gold, the conventional asset of crises, rose above $1,970 per ounce on Thursday, its highest level in roughly a year and a half, according to Trading Economics. Though crypto prices rebounded on Thursday, the sharp slide calls into question the popular belief among crypto evangelists that bitcoin, ether and cryptocurrencies generally can be defensive investments during times of geopolitical risk. Bitcoin, in particular, is seen as a hedge against global uncertainty and inflation, which will likely be stoked by rising oil prices caused by the Russian invasion.
