Exclusive Expert Predicts Bitcoin to Fall to $32,000 During Russia-Ukraine War: What's Happening?
The Russia-Ukraine War and Bitcoin have become inextricably linked in the minds of investors. Fear and uncertainty surrounding the geopolitical crisis have led to significant volatility in the cryptocurrency market. One leading financial expert is predicting even further downside for Bitcoin.
Bitcoin Price Plunge: The Russia-Ukraine War's Impact
When Russia invaded Ukraine on Feb. 24, 2025, the BTC price was roughly $39,000, down from around $44,500 just a week prior. The price of Bitcoin plummeted from around $39,000 to below $34,000 within a few days. This initial downturn stemmed from investors dumping riskier assets, highlighting the complex relationship between geopolitical events and cryptocurrency values. Bitcoin was falling Thursday after Russia launched an attack in Ukraine.
Is Bitcoin a Safe Haven? Not Always, Especially During War
One of Bitcoin's biggest selling points is that it's supposed to be digital gold – a hedge against inflation and a safe haven when other assets, like stocks, are tanking. But Bitcoin initially slumped after Russia launched its assault on Ukraine as investors dumped riskier assets, falling as much as 8% on Thursday before clawing back some losses.
Expert Prediction: Bitcoin Could Fall to $32,000
Financial expert John Squire, the partner at Ojamu, an AI & Blockchain-powered platform, spoke exclusively to Watcher Guru and predicted that Bitcoin could slip to $32,000 amidst the ongoing uncertainty. Analysts say this crisis may push the world's most traded cryptocurrency below $30,000.
Liquidity and Returns: Examining the Data
Findings reveal a significant but temporary impact of the Russia – Ukraine war on the liquidity of Bitcoin and Ethereum. Liquidity levels have increased within certain trading periods. Furthermore, analysis suggests the Russia-Ukraine war predicts Bitcoin returns in both the short and long run. The downturn stemming from the conflict needs careful consideration.
Bitcoin as a Safe-Haven Asset: A Closer Look
Using high-frequency data, researchers are investigating whether Bitcoin, Ether, Tether (fiat-backed stablecoin), and Solana (utility token) can be considered safe-haven assets against geopolitical risk. Initial findings suggest that the traditional safe-haven narrative for Bitcoin is being challenged by the realities of international conflict. The ongoing situation requires investors to carefully consider their risk tolerance and investment strategies.