This week, there are few winners among Bitcoin hodlers, as stocks plummet and commodities soar.
After a lack of progress in Russia-Ukraine talks sent markets falling on March 8, Bitcoin (BTC) recovered from one-week lows.
Commodities “trading like meme stocks”
After Monday’s Wall Street open, BTC/USD bounced at $37,170 on Bitstamp, according to data from TradingView.
The pair was trading at over $38,500 at the time of writing, with overnight advances maintaining support.
The lack of consensus in the third round of discussions to resolve hostilities between Russia and Ukraine had a negative impact on cryptocurrency and stocks.
“There are some slight improvements in the logistics of humanitarian corridors… Intensive deliberations on the basic political block of the regulations, as well as a ceasefire and security assurances, have proceeded,” negotiator Mykhailo Podolyak tweeted as part of input following the meetings’ completion.
The news, however, was insufficient to inspire optimism, as U.S. stocks fell throughout the day, with the S&P 500 ending the day down 2.95 percent.
Meanwhile, commodity prices soared to previously unheard-of heights, with nickel surging beyond $100,000 per tonne on the London Metal Exchange.
Commodities are trading like meme stocks.
Wheat +17%, +75% YTD. pic.twitter.com/04T2h5aRmR
— Dylan LeClair 🟠 (@DylanLeClair_) March 8, 2022
At the same time, Russia’s agony persisted, with only ruble-exposed investors hedging in BTC benefiting. BTC/RUB touched fresh all-time highs of little over 5 million on Binance on Monday evening.
Despite Bitcoin’s poor price reaction as a safe haven, which is ironically connected with stocks, there were words of faith from devoted believers amid the chaos.
Marty Bent, creator of Bitcoin media business TFTC, summarised, “The world is watching trust get repriced in real time.”
“When the dust settles, bitcoin will be the biggest beneficiary because the masses will recognise that the only thing they can trust is a distributed system that cannot be controlled by a single person, government, corporate, or coalition.”
Meanwhile, regulatory concerns in the United States led to the market’s trepidation.
$40,000 is set as a short-term goal.
Bitcoin remained unpalatable for many traders in low timeframe deals, with upward potential clearly constrained.
Anbessa and Crypto Ed, two well-known traders, see $40,000 as an obvious goal for a bullish divergence.
#BTC LTF Intraday Update 📈✅
bullish divergence playing out up 3% pic.twitter.com/Gabh2xSF5P
— AN₿ESSA (@Anbessa100) March 7, 2022
“When that correction is accomplished, we’ll be able to specify target more precisely, but for now, we’ll continue with 40k,” Crypto Ed stated.
Impending events in the United States, particularly consumer price index (CPI) data due Thursday and an interest rate rise decision next week, are likely to disturb sentiment in the short term.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.