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Bitcoin surpasses $38,000 as Wall Street begins the day with a strange calm over Russia sanctions

An hour after the open, the feared volatile trading session had yet to appear, with Bitcoin seeing modest gains.

Bitcoin (BTC) recovered to $38,000 as Wall Street opened on Feb. 22 amid concerns about geopolitical instability.

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Bitcoin treads carefully around macroeconomic cues.

Analyst data showed an unusually calm start to the first Wall Street session of the week for both stocks and cryptocurrency.

Fears of a dramatic bout of volatility accompanying the open had been high following Russian President Vladimir Putin’s announcement on Feb. 21 that he would recognize two breakaway republics in eastern Ukraine.

Sanctions, which were still being announced at the time of writing, were also expected to add fuel to the fire, but there was little movement on the day.

The S&P 500 was nearly flat thirty minutes after trading began, with Russian markets leading the way down and gold leading the way up.

Meanwhile, fellow trader and analyst Scott Melker focused on the potential for the Russia-Ukraine crisis to influence US Federal Reserve policy.

According to JPMorgan, a potential conflict could force the Fed to abandon the veracity of its planned interest rate hikes this year.

Analysts at JPMorgan believe that commodity price increases will be the catalyst for a Fed rethink, according to a note published on February 22 and quoted by various media outlets.

“Russia-Ukraine tensions are a low earnings risk for US corporations,” they wrote, “but an energy price shock amid an aggressive central bank pivot focused on inflation could further dampen investor sentiment and growth outlook.”

Meanwhile, the sanctions avoided full-fledged economic retaliation, leaving Russia’s two largest state-owned banks, Sberbank and VTB, unaffected.

Traders are reviving Bitcoin one step at a time.

In the meantime, popular trader Anbessa remained calm as BTC/USD conformed to expectations without a significant trend violation.

He predicted a potential support/resistance flip near $37,700, which he hopes will become an important feature for the higher timeframe chart in the future.

However, as previously reported, Bitcoin and altcoins continue to fly under the radar for the vast majority of mainstream consumers, with only large-volume institutional players and whales remaining active.

“If we are losing new users while still experiencing heavy dilution and retail outflows. There is no way out. Perhaps for BTC. But not alts at the extremes of the risk curve “Pentoshi, a fellow trader, added his own discussion of the macro environment.

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

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