After a sharp decline, Bitcoin prices rise again after the imposition of US sanctions on Russia, the cryptocurrency market is on the rise again after experiencing a sharp decline due to the geopolitical crisis in Russia and Ukraine. It seems that traders are starting to break away from the geopolitical crisis.
Within 24 hours, Bitcoin (BTC) rose again, increasing by 4.20% and reaching a price of $38,538 based on CoinMarketCap data. Ethereum (ETH) is up 2.27% and is trading at $2,630 at the time of writing. Prior to Bitcoin's comeback, it had fallen more than 8% to touch the price of $34,702. The figure marked the asset's fall to a monthly low and fell below a key support level. Katie Stockton of Fairlead Strategies also said that a downturn could occur at a time, and could take two weeks or more to stabilize.
President Joe Biden said at a press conference that the United States would impose sanctions on Russia. The sanctions would limit Russia's ability to do business in dollars, euros, pounds and yen in a bid to isolate Moscow from the global economy.
Cryptocurrency price movements increasingly appear to be correlated with movements in other risky assets such as stocks. This is because institutional interest is increasing and more short-term investors are trading Bitcoin like any other riskier equity that has entered the market.
The cryptocurrency has been under pressure since Bitcoin hit a record high of nearly $69,000 in early November. Regarding this, Anto Paroian as chief operating officer of ARK36 responded,
The current geopolitical situation will inevitably have an impact on price increases in commodity markets and exacerbate the problem of an already stable supply chain, and may increase inflation. This means that the Fed and other central banks may really have no room to improve and we can expect risk assets and cryptocurrencies to go deeper into bear market territory.”
Vijay Ayyar, vice president of corporate development at crypto exchange Luno, predicts that Bitcoin could advance to a low of between $28,000 and $29,000 in July last year. If Bitcoin can hold above that price, it could hit a new high in late 2021. However, he adds that when the price drops below that area, it could move below $20,000.
@juninhoo