After recording an all-time low following Russia’s invasion of Ukraine yesterday, Bitcoin has seen a slight recovery of 10.42% in the past 24-hours. Investors were scrambling for sell-offs following the market tailspin, but are now awaiting a breakthrough as the popular cryptocurrency makes a climb towards the $40,000 mark.
Analysts highlighted that the market was volatile throughout the week due to the Russia-Ukraine tensions, Federal Reserves’ interest rates hike in March, and the US President’s executive order on crypto. These had been pushing and pulling the cryptocurrencies price.
On February 24, BTC fell to a new low of $34,333 as the full impact of the Ukraine incursion set in. However, the market and investors were mentally prepared for the sharp drop. Analysts believe bitcoin could recover to $40,000 in the short term. Pentoshi, a crypto trader, is wary of the overall macro environment. He says it looks pretty dire. But Pentoshi predicts the world’s most popular crypto asset will eventually trade higher.
BTC is now in the blue zone. This would have proved to be a great time to buy more bitcoin. David Lifchitz, the managing director and chief investment officer at ExoAlpha, highlighted that cryptocurrencies have been moving in tandem with the Russia and Ukraine crisis. He pointed out a positive aspect about there being less leverage than during the drawdown in May 2021. There was less liquidation of over-levered players.
Lifchitz noted that BTC’s recent low of $34,400 was close to the low of the range it has been stuck in for a couple of weeks now. He said the Ukraine-Russia situation will determine the direction of bitcoin and other cryptocurrencies’ price. And the central banks’ rate hikes are not to be missed. The rates won’t be as tough as market commentaries are putting it.