Bitcoin Price Drop on Russia's Ukraine Invasion Suggests It’s Not ‘Digital Gold’

 

    Bitcoin’s choppy week amid Russia’s Ukraine invasion shows the cryptocurrency might not be the safe haven backers believe it to be.

    Some digital-asset investors have previously described bitcoin as “digital gold” – referring to the idea that the cryptocurrency could serve as a "store of value" similar to that of the precious metal and would hold its value in times of geopolitical or economic turmoil.

    Instead, the price of bitcoin (BTC) is down 11% on the week.

    Since Russian President Vladimir Putin announced a “special military operation” in Ukraine, the world’s largest cryptocurrency by market capitalization has struggled to break above the $37,000 mark in the last 24 hours after dipping below $34,400 briefly earlier Thursday. U.S. President Joe Biden imposed fresh sanctions against Russia.

    Gold, in contrast to bitcoin, is trading at its highest levels in over a year. The precious metal, often touted as a safe-haven asset at times of crisis and war, is up 1.4% on the week and reached a spot price high of $1,974 today.