23.02.202207:36 Forex Analysis & Reviews: Bitcoin is no longer considered as digital gold

The crypto market collapsed because geopolitical tensions around Ukraine roiled the global markets. Bitcoin fell to $36,240, its lowest level in more than two weeks. Ether also sank quite strongly, while other digital assets fell between 8% and 15%. Ripple (XRP) was one of those that was hardest hit.

Another reason why crypto fell down is the sharp decline in US stock indices. Even though it was quickly won back by buyers, pressure on the market continued further because Bitcoin has not yet managed to get out of the bearish trend.

And although Bitcoin is often touted by its proponents as a safe-haven asset similar to gold, it does not appear as such yet. Because of that, the argument that it is a kind of "digital gold" collapsed, more especially since it became closely linked to fluctuations in traditional stock markets, making it a risky asset.

Many experts are also talking about crypto winter again, making assumptions that Bitcoin will not turn bullish until 2024, when the next "halving" event should occur. Everyone is wondering what to do, especially after Intel revealed the characteristics of the first generation of its long-awaited mining chips. It chose to remain silent about the details of the second generation, which will be delivered to Griid at the end of this year. The entry of the chip giant into the crypto-mining market is expected to change the playing field, where the two companies reign supreme. But the performance shown for the first generation "Bonanza Mine" is below the best available performance. Against this background, many mining companies have a reasonable question - to wait further and expect to receive second-generation chips at the end of this year, or to buy and start working with what is available.

Intel described the chip unveiled at ISSCC as a "first-generation product study from 2018," while the supply agreement with Griid refers to a second-generation ASIC codenamed BZM2.

Technical analysis for Bitcoin

BTC fell below $38,000 level and is currently trading around $35,690. Active purchases were seen at $36,510, but a lot will depend on $35,690 because a breakdown will lead to a further dip to $32,910 and $29,240. Meanwhile, a rise above $41,000 will prompt a rally to $38,140 and possibly $44,720 and $48,550.

Technical analysis for Ethereum

A lot depends on $2,750 because a breakout will lead to a rise to $2,940 and $3,190. Meanwhile, a decline below the level will result in a deeper fall to $2,490, $2,312 and $2,149.