Russia’s attack on Ukraine has upended the global investment market as gold has seen a major spike in value and bitcoin saw a tremendous dip.
What happened: Gold has jumped to its highest levels in more than a year amid the Russian invasion of Ukraine, CNBC reports.
- Gold was trading at about $1,968.01 per ounce by Wednesday morning, which is about 3.17% higher than the previous day and the highest since late 2020, according to CNBC.
- Gold is expected to climb to $1,969.30 per ounce, according to CNBC.
Meanwhile, the price of bitcoin dropped below $35,000 Thursday after Russian President Vladimir Putin announced a military operation in Ukraine, per CNN.
- The coin has hovered around $35,000 in the hours after the attack, suffering at least an 8% drop compared to the day before, according to Coin Market Cap.
Why it matters: Bitcoin has often been considered digital gold, but the crisis between Russia and Ukraine shows the tremendous risk with the coin, per NBC News.
- “The correlation between crypto and stocks has been high over the last few months on both inflation-related macro news and the Russia-Ukraine geopolitical situation,” said Chris Dick, a quantitative trader at crypto market maker B2C2, according to NBC News.
- “This correlation shows that bitcoin is firmly behaving like a risk asset at the moment — not the safe haven it was touted to be a few years ago.”