Cryptocurrencies and equities continued to suffer Tuesday amid increasing geopolitical tensions.
Western nations prepared to launch sanctions against Russian financial interests after efforts to de-escalate the conflict between Russia and Ukraine soured over the past few days. On Tuesday, U.S. officials declared Russia’s movement of troops into the eastern, separatist region of Ukraine as «the beginning of an invasion.»
Bitcoin (BTC) and ether (ETH) were roughly flat over the past 24 hours, compared with a 7% drop in XRP and a 5% loss in SHIB. Most alternative cryptocurrencies (altcoins) underperformed BTC on Tuesday, suggesting a lower appetite for risk among crypto traders.
Some analysts expect choppy price action to persist over the short term, although market panic could eventually fade.
Typically, S&P 500 stock index sell-offs because of geopolitical events have been short-lived, according to a report by Deutsche Bank. The firm’s research shows the median sell-off was -5.7%, lasting around three weeks, before reaching a trough, and then another three weeks to recovery from prior levels.
Given the rising correlation between BTC and the S&P 500, some traders are patiently waiting for the decline across speculative assets to settle.
●Bitcoin (BTC): $38032, −0.73%
●Ether (ETH): $2613, −1.73%
●S&P 500 daily close: $4305, −1.02%
●Gold: $1903 per troy ounce, +0.22%
●Ten-year Treasury yield daily close: 1.95%
Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices.
- SAND token joins broader crypto market in gloomy outlook: SAND, the native token of the Ethereum-based virtual-reality platform The Sandbox, dipped below the widely tracked 200-day moving average (MA) on Tuesday, joining peers from other crypto sub-sectors in signaling a gloomy market mood, according to CoinDesk’s Omkar Godbole. Read more here.
- Tether slashes commercial paper holdings by 21%: Tether has reduced its commercial paper holdings by $6.2 billion over the last quarter in 2021, according to its latest attestation report. The largest stablecoin issuer by total supply cut its assets held in commercial paper from $30.5 billion in the period ending in September to $24.2 billion in December. Tether also drastically reduced its cash assets, from $7.2 billion to $4.2 billion, according to CoinDesk’s Helene Braun. Read more here.
- Small economies dislike stablecoins: For example, Taiwan’s central bank is not a big fan of the Taiwan dollar being used to settle transactions that don’t have a nexus to Taiwan, something a stablecoin is specifically designed to do, according to CoinDesk’s Sam Reynolds. Read more here.
- A Former Bored Ape Owner Is Suing OpenSea for $1M, but His Lawsuit Is Riddled With Errors
- Taxes Are a Wild Card for Public Companies Holding Crypto
- Kazakh Authorities Bust 202MW of Illegal Crypto Mines
- Tokenized Asset Firm Securitize Acquires Stock Transfer Company
- London Stock Exchange Group Buys Fintech Firm TORA for $325M
Digital assets in the CoinDesk 20 ended the day lower.
There are no gainers in CoinDesk 20 today.
Asset Ticker Returns Sector XRP XRP −7.0% Currency Internet Computer ICP −5.0% Computing Cardano ADA −4.9% Smart Contract Platform
Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.