For macro markets, a bleak week awaits, while crypto traders enjoy some reprieve over the weekend.
On Feb. 27, Bitcoin (BTC) was trading at $40,000, with expectations for a weekly closure based on avoiding a fourth consecutive red monthly candle.
Tensions are rising when the TradFi markets open.
Tensions mount for TradFi markets open
BTC/USD made numerous efforts to break out of the $30,000-$40,000 range on Sunday, according to data from Cointelegraph Markets Pro and TradingView, all of which were rejected.
The pair had remained generally higher over the weekend, providing some relief to traders following a week of volatility brought on by geopolitics and media headlines.
Bitcoin was now expected to close out the week and the month at $38,500, failing to do so would result in a fourth consecutive monthly red candle.
— Matthew Hyland (@MatthewHyland_) February 27, 2022
Despite the downside move in response to the Ukraine incursion, the stock has bottomed out around $34,300, compared to $32,800 in January.
Pentoshi, a famous trader and analyst, stated, “Cautiously positive this is a short to mid-term bottom for BTC.”
“I’m pulling my 40.3k orders (which aren’t fantastic) and focusing on 41.6k for de-risking. There’s certainly great upside if you can flip it. I’m still concerned since the macro environment, in my opinion, is anything but bullish.”
On Monday’s open, the macro landscape was set to provide a new round of uncertainty, thanks to Western measures to cut Russian banks off from off-shore liquidity and the SWIFT payment system.
President Vladimir Putin’s statement of Russia’s nuclear deterrent ruffled some feathers over the weekend, with Ukraine and Russia resuming border talks on the Belarusian border on Sunday.
Meanwhile, for Bitcoin supporters, the potential fallout from Russian financial penalties, as well as the cryptocurrency’s role as a neutral network for value transfer, began to take centre stage.
What does it mean for USD & SWIFT if *both* sides of the conflict opt into #Bitcoin for its superior features?
Answer: It means all countries & institutions better buy up as much #Bitcoin as they possibly can now b4 their financial platform gets obsoleted.
— Jason Lowery (@JasonPLowery) February 26, 2022
In a Twitter response to the central bank assets being frozen, former Coinbase CTO Balaji Srinivasan tweeted, “Still processing the ramifications.”
“This is a financial atomic weapon. People are bankrupted without having to blow up buildings. It affects all 145 million Russians at the same time, every ruble bearer. The Russian economy could collapse in a maximalist scenario.”
Ukraine, for its part, has begun to take Bitcoin, Ether (ETH), and Tether donations for its troops (USDT). At the time of writing, its wallets had received over 91 BTC ($3.57 million), 1,797 ETH ($5.02 million), and $1 million in USDT.
For bitcoin, the weekend remains “boring”
However, there were few opportunities in the crypto markets as sentiment remained in a “wait and see” mentality.
None of the top 10 cryptocurrencies by market capitalization have made significant gains or losses in the last 24 hours.
ETH/USD is currently trading near $2,800, with weekly gains approaching 6%.
“With the situation in Ukraine, we’re probably in for a very busy and volatile week. Play it safe with your positions and don’t go overboard. Due to these political events, sentiment and momentum can shift quickly.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.