Key points to remember:
- The total cryptocurrency market capitalization has increased by nearly 10% in the past 24 hours, erasing much of yesterday’s losses.
- LUNA has proven to be the strongest top 50 coin over the past 72 hours, gaining over 25%
- Big price swings are to be expected given Bitcoin’s “risky safe haven” status, says blockchain analyst Willy Woo
Bitcoin Surpasses $39,000 on Tailwind of 10% Gains
The cryptocurrency market has made a pronounced zigzag movement over the past 24 hours. The majority of digital assets have followed in the footsteps of Bitcoin, which fell more than 10% yesterday to rebound from its highs on Thursday.
Bitcoin Mimics Stocks, Loses Over 10% as Russia Launches ‘Special Military Operation’ in Ukraine
As Russia announced its “special military operation” in Ukraine, the price of Bitcoin fell to $34,400 within hours. However, the world’s largest cryptocurrency erased all its losses within hours.
Other top 10 cryptos including Ethereum, Solana, Cardano, and Avalanche followed the same pattern – losing more than 10% yesterday, only to regain lost ground the next day.
The notable exception was Terra’s LUNA. The native token of the second-largest DeFi platform by total value locked in decentralized applications running on its rails has shown great resilience over the past 48 hours. As a result, LUNA is currently at the top of the list of biggest daily winners in the top 50 with more than 20% gains. LUNA’s stellar market performance is largely tied to Wednesday’s announcement of the $1 billion UST reserve fund, which solidified Terra as the industry’s leading algorithmic stablecoin trader.
Bitcoin’s role as a safe-haven asset is questioned
Despite the rapid recovery in value of the majority of digital assets, discussion has erupted over Bitcoin’s role as a reserve asset. Among others, Peter Schiffprominent bitcoin critic and big gold supporter, and Emily Nicolle of Bloomberg, wrote about bitcoin’s poor performance in light of Russia’s attack on Ukraine.
However, it wasn’t long before the gold price dipped and Bitcoin started to grow. Speaking on the topic of safe havens, blockchain analyst Willy Woo explained his views on Bitcoin’s current role on Twitter.
While large price swings are certainly problematic, they are bound to become less volatile as adoption picks up. Meanwhile, Bitcoin’s rally in light of economic uncertainty is instilling great confidence in the world’s oldest crypto.
David is a crypto enthusiast and personal finance expert. He has created numerous publications for different platforms. He loves exploring new things, and that’s how he discovered blockchain in the first place.