Bitcoin drops below $44k as crypto follows stock market sell off ๐จ This article is 3 years old...
Bitcoin drops below $44k as crypto follows stock market sell off
Continued global unrest may be a crucial factor in a sell-off affecting both stocks and crypto as the chance of Russia defaulting rises to 99%
2 min read
Updated: Apr. 6, 2022 at 10:30 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Continued global unrest may be crucial in a sell-off affecting both stocks and crypto. Several factors at play are causing uncertainty in the markets, which has been a driving factor in pullbacks since 2020. Investors historically move away from risk-on assets such as tech and crypto whenever the road forward is unclear.
Today, Bloomberg is reporting that the “cost of insuring Russia’s government debt now signals a record 99% chance of default within a year,” according to CDS data. The impact of one of the world’s most significant economic powers going into default seemingly has the world worried. In addition, Russia having to pay its dollar debt in Rubles signifies an apparent issue with its liquidity due to sanctions. Bloomberg states:
“Russia paid rubles for some of its dollar-debt obligations due this week after foreign banks declined to process payments of almost $650 million, raising speculation over a potential technical default.”
A further uncertainty comes as Mikhail Khodorkovsky, once the wealthiest person in Russia, stated that Putin already views Russia as being at war with the West. He claims that Putin “thinks NATO is weak and that they will not defend the Baltics.” Given the support that NATO states have given to Ukraine, this line of thinking seems highly plausible.
Following a White House statementย yesterday that condemned China, India, and Brazil for not joining the sanctions against Russia, a worrying narrative is developing. The White House stated that “our expectation is not only that other countries will abide by, but that they will also be a constructive part of holding Russia accountable.”
White House National Economic Council director Brian Deese said Wednesday that:
The U.S. has told India that the consequences of a โmore explicit strategic alignmentโ with Moscow would be โsignificant and long-term.โ
Putin may believe that he is already at war with NATO, China, India, and Brazil are now being warned by the US that they should not show any “strategic alignment” with Russia. It seems that Russia is almost certainly going into default within the following year. The next move will be critical for the crypto market and macroeconomic stability globally. Bitcoin has shown the closest correlation to the stock market in its history this year as it recently hit a 17 month high.
On days like this, it isn’t easy to focus on technical analysis or crypto fundamentals. World events are always a factor in the price of Bitcoin, whether you believe it to be an inflation hedge or not. Today, markets seem concerned by their inability to predict what, politically, will transpire next. We will continue to report on events as they happen and how they affect the crypto landscape.
Bitcoin Market Data
At the time of press 10:30 pm UTC on Apr. 6, 2022, Bitcoin is ranked #1 by market cap and the price is down 4.11% over the past 24 hours. Bitcoin has a market capitalization of $835.21 billion with a 24-hour trading volume of $38.97 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 10:30 pm UTC on Apr. 6, 2022, the total crypto market is valued at at $2.02 trillion with a 24-hour volume of $126.2 billion. Bitcoin dominance is currently at 41.37%. Learn more about the crypto market ›
Author 
Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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