Bitcoin (BTC) returned to $38,000 as Wall Street opened on February 22 amidst a tense atmosphere of geopolitical instability.
Hourly BTC/USD light chart (Bit Mark). Source: Trading View
Bitcoin Exceeds Macro Signals
Data from Cointelegraph Markets Pro and TradingView showed an eerily quiet start to the first Wall Street session this week for both stocks and cryptocurrencies.
Concerns about a major offensive have been ups and downs in the wake of the reopening thanks to Russian President Vladimir Putin’s February 21 announcement of recognizing two republics in eastern Ukraine.
It was believed that the penalties, which were still announced at the time of writing, were also about to set the fire, but there was little movement that day.
The S&P 500 index remained virtually unchanged after thirty minutes of trading, leaving the Russian markets among the biggest losers and gold the gainer.
“I think we’ll open the area in the red and then immediately move to risky assets and do a little correction in gold,” Cointelegraph contributor Mikael van de Poppe predicted earlier.
Meanwhile, co-founder and analyst Scott Melker focused on how the fiasco between Russia and Ukraine will affect US Federal Reserve policy.
According to banking giant JP Morgan, the outcome of the potential conflict may be that the Fed will abandon its planned rate hike this year.
According to a February 22 note, which was reported by various media outlets, JPMorgan analysts believe that the Fed’s repercussions will be driven by an increase in commodity prices.
“The tension between Russia and Ukraine does not pose a significant risk to US corporate earnings, but the energy price shock in the midst of a violent inflation-targeting central bank restructuring could further dampen investor sentiment and growth prospects,” they wrote.
Meanwhile, the sanctions prevented mass economic retaliation from hitting Russia’s two largest state-owned banks, Sberbank and VTB.
Traders recover bitcoin step by step
Looking at Bitcoin, popular trader Anbessa escaped calm as BTC/USD met expectations without a major trend reversal.
Related: Bitcoin Mayer returns to July 2021 levels multiple times in a new sign. 37 thousand dollars BTC is a long-term purchase
He said that a possible reversal of the support/resistance level near $37,700 was on the cards, and we hope that this will become an important feature of the higher time frame chart going forward.
However, as Cointelegraph reported, bitcoin and altcoin remain off the radar of most mainstream consumers, with large institutional players and whales retaining meaningful engagement.
“If the loss of new users continues but we still have strong easing and retail outbound sales. There will be no improvements. Probably for BTC,” Co-Founder Bentoshi added in his discussion of the macroeconomic environment, but there was no significant change in the risk curve.