The world is seeing massive crises these days, and this is creating financial uncertainty. Check out what the geopolitical situation and more factors could do to the crypto market.
It’s been just revealed that the crypto trader Michaël van de Poppe just said that the current war in Eastern Europe could drive crypto stalwarts Bitcoin (BTC) and Ethereum (ETH) to new lows.
In a new video, he just said that the conflict between Ukraine and Russia is causing economic uncertainties. These are impacting indices, inflation rates as well as the prices of gold and Bitcoin.
“At this stage, we are seeing that Bitcoin is dropping down significantly and why is that? That’s because of short-term panic. You must understand that traders are short-term based people, very impulsive, emotional and that is what the markets are reflecting…”
Van de Poppe also highlighted the fact that the current downturn is creating a gap between Bitcoin’s price and its value.
This could be an opportunity for those still bullish on the top crypto. On the other hand, he says BTC could still make a new lower low at around $30,000.
“The reason why Bitcoin is dropping down right now is because of the horizon that is going to slim or getting smaller or shorter time frame through which people are opting out of those assets and flying towards the US dollar or towards gold as we have been seeing and because of that, the valuation of Bitcoin is dropping down and because of that, we can see that the gap between the fundamental growth and the price in itself is getting larger and larger, which creates heavy opportunities…”
The analyst also said that ETH could see more price drops.
At the moment of writing this article, BTC and ETH are both trading in the red. BTC is priced just above $38k, and ETH is trading at $2,539.