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Bitcoin passes $36K as 24-hour cryptocurrency liquidations exceed $500M

War fears are detrimental to Bitcoin and altcoins, with losses happening in quick succession followed by a minor recovery.

Bitcoin (BTC) crept higher following the opening of Wall Street on Feb. 24, with Russia’s invasion of Ukraine and its aftermath remaining at the top of investors’ agendas.

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Risk sentiment is expected to be the “primary driver” of cryptocurrency

TradingView data indicated that BTC/USD was trading near $36,400 on Bitstamp two hours after the opening bell, up more than $2,000 from recent lows.

Skittish markets were forced to confront the consequences of Russia’s nighttime entry into Ukraine, a move that continued and ricocheted throughout global trading.

Russia’s stock market, naturally, experienced a different level of anguish, with MOEX losing 50% of its value and briefly suspending trading.

Bitcoin, which had suffered earlier in the day, mounted a solid rebound.

“At the start of the week, crypto markets were battered by growing tensions between Russia and Ukraine. Our cryptocurrency indices had already experienced significant losses across all sectors “According to Sahil Sakhrani, a market analyst at cryptocurrency research firm Hive.

Sakhrani cautioned that the news of additional sanctions against Russia’s economy might exacerbate the situation further, and that the correlation between Bitcoin and traditional equity markets should not be underestimated.

“Now the situation has deteriorated further, with an apparent Russian invasion of Ukraine and the EU, the United Kingdom, and the United States considering additional sanctions against Russia,” he continued.

“Risk aversion is likely to be the dominant theme for markets. With the correlation between Bitcoin and NASDAQ picking up again, broader risk sentiment will likely be the dominant driver of crypto markets.”

A second point of concern was the possibility that the United States Federal Reserve would slacken key rate increases as a result of the debate.

However, even well-known trader and analyst Pentoshi, such a theory seemed out of place.

“If you have an oncoming recession with zero interest rates and increase capital injection, you end up with something worse. Inflation, “A recent Twitter update contained an argument.

According to economist Mohamed El-Erian, such risks “occur at a time when the Federal Reserve’s policy flexibility is restricted and liquidity is patchy.”

Liquidations exceed $500 million in value

Meanwhile, the day’s developments pushed futures financing rates far into negative territory, as traders considered the possibility of additional downside.

Statistics derived from an analytics source Coinglass confirmed the transaction, which was accompanied by cross-crypto liquidations totaling $530 million in less than 24 hours.

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Thus, “heavy” selling by shorters was evident in the data, according to research firm Numbers.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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