Tuesday, the precious metal was just a whisker away from a USD peak, tracking the rise in oil and other commodities, while stocks fell.
Bitcoin (BTC) lost its daily gains on March 8 before regaining them later that day, as US Vice President Joe Biden ordered a comprehensive ban on Russian oil imports.
BTC reaches a zenith, while gold takes the show
Cointelegraph Markets Pro and TradingView data tracked BTC/USD as it approached $38,000 an hour after Wall Street opened on Tuesday.
After reaching $39,240, the pair quickly reversed course as Biden confirmed the plans, which boosted oil’s already robust gains and weighed on stocks and risk assets.
“Today, I’m announcing that the United States is going after Russia’s primary economic artery,” he stated during a press conference.
“We are prohibiting all imports of Russian crude oil, natural gas, and energy. This implies that Russian oil will no longer be accepted at US ports, and the American people will inflict another devastating blow on Putin’s war machine.”
Brent crude soared to a record high of $133 per barrel on the announcement, but US markets were largely unmoved, with the S&P 500 down 0.5 percent on the day at the time of writing.
#Oil prices jump as Biden announces full ban on Russian oil, gas, energy imports in response to Putin’s invasion of #Ukraine. pic.twitter.com/7hP1m1bmfc
— Holger Zschaepitz (@Schuldensuehner) March 8, 2022
Bitcoin, while remaining inside a familiar range, avoided significant losses by bouncing back to $39,000.
“I’m not sure what the outcome of the US restriction on pricing action will be. “The natural reaction would be for USOIL to increase further, while risk-on assets decline,”
“I actually think the opposite takes place with the impact of a ‘buy the rumor, sell the news’ event.”
Meanwhile, gold profited from the newest twist in the Russia–Ukraine conflict, regaining a foothold above $2,000 per ounce and aiming for all-time highs.
Have stocks already reached a bottom?
Similarly, not everyone was convinced that the worst was yet to come for stocks.
As a silver lining for Bitcoin bulls, popular analytics account BTCfuel identified the equities market-related economic anxiety index, indicating that stocks may have already delivered their drop, if history is any indicator.
For people concerned about the stock market in the short / mid term (and its potential relation with #Bitcoin)
This indicator underneath shows that the possible big capitulation in the stock markets likely already happened in the Ukraine – Russia conflict (value > 500)
— BTCfuel (@BTCfuel) March 8, 2022
“During the six instances when this occurred, the period of greatest uncertainty was during the large capitulation. More crucially, stocks increased in the months that followed, rising by an average of 18 percent after three months,” they noted.
The last and only big such event in Bitcoin’s history occurred in March 2020 with the COVID-19 crash and its aftermath.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.