Bitcoin surges above $38,000 as Wall Street opens to eerie calm over Russian sanctions

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Bitcoin (BTC) recovered to $38,000 at Wall Street’s open on Feb. 22 amid tense atmosphere over geopolitical instability.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

Bitcoin tiptoeing around macro signals

Data from Cointelegraph Markets Pro and TradingView showed an eerily calm start to Wall Street’s first session of the week for stocks and crypto.

Fears of a dramatic bout of volatility accompanying the opening thanks to Russian President Vladimir Putin’s Feb. 21 announcement that he would recognize two breakaway republics in eastern Ukraine were high.

The sanctions, still announced at the time of writing, were also believed to be on the verge of fueling the fire, but on the day there was little movement.

The S&P 500 was nearly flat thirty minutes into trading, leaving Russian markets as the biggest losers and gold as the big winner..

“I think we will open in the red and then immediately bounce off risk assets and have a slight correction on gold,” Cointelegraph contributor Michaël van de Poppe previously said. forecast.

Meanwhile, fellow trader and analyst Scott Melker drew attention to the potential for the Russia-Ukraine debacle to influence US Federal Reserve policy.

According to banking giant JPMorgan, the effect of a potential conflict could be to cause the Fed to abandon the veracity of its planned interest rate hikes this year.

According to a note published on February 22 and quoted by various media, JPMorgan analysts believe that the trigger for a Fed overhaul will come in the form of increases in commodity prices.

“The tension between Russia and Ukraine is low earnings risk for U.S. companies, but an energy price shock amid an aggressive inflation-focused central bank pivot could still weigh on the market. investor sentiment and growth prospects,” they wrote.

Meanwhile, the sanctions have delayed full economic retaliation, with Russia’s two largest state-owned banks, Sberbank and VTB, unaffected.

Traders are taking bitcoin recovery one step at a time

Looking ahead on Bitcoin, popular trader Anbessa meanwhile shunned calm as BTC/USD came in line with expectations with no significant trend violation.

Related: Bitcoin Mayer Multiple Returns To July 2021 Levels In A New Sign $37,000 BTC Is A Long-Term Buy

A potential support/resistance reversal near $37,700 was on the cards, he said, which will hopefully become an important feature for the longer-term chart going forward.

As Cointelegraph reported, however, Bitcoin and altcoins remain off the radar for the majority of mainstream consumers, with mostly high-volume institutional players and whales maintaining significant participation.

“If we bleed new users but still have high dilution and retail outflows. There’s no recovery. Maybe for BTC. But not far down the risk curve,” fellow trader Pentoshi said. . added in his own discussion of the macro environment.