After a rally of almost 3,000 dollars in just a few hours, Bitcoin has returned to the $40k zone, touching $41,000! This comes after Bitcoin spent the previous five days hovering around the 38,000 price level. This would be the first time Bitcoin has recovered and maintained a support level of 40,000 since tensions between Russia and Ukraine turned to all out war.
The world's gaze remains fixed on Moscow and Kiev, and BTC initially fell by 8% as a result of the wars in Eastern Europe.
While Bitcoin Rises, Other Markets Continue To Suffer...
While Bitcoin was rising, stocks were falling and energy prices were rising on Monday, as an escalation of sanctions against Russia in response to the ongoing conflict in Ukraine stoked further uncertainty about the outlook for global financial markets, sending oil prices above $900 per barrel for the first time since 2014.
When comparing bitcoin to other assets on the market, we can see a shift in the way the market's most popular cryptocurrency has been behaving. While bitcoin's price dropped in tandem with the US stock market a few days ago, with the start of Russia's invasion of Ukraine, there is now a decoupling from the activities and a price trend more akin to commodities.
What's Causing This?
According to a belief circulating financial discussion boards, Russian and Ukrainian investors, as well as those from other areas of the world, are turning to raw materials and bitcoin to protect their riches in the wake of the disaster.
This would support the idea that bitcoin is becoming more widely regarded as a safe haven asset in situations with significant economic, political, or social ramifications.
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Author: Matthew Miller
London Newsroom / Global Crypto Press
Breaking Crypto News
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