Bitcoin (BTC) retired and later regained its daily gains on March 8 when US President Joe Biden announced a complete ban on Russian oil imports.
Hourly BTC/USD light chart (Bit Mark). Source: Trading View
Bitcoin completes the cycle, gold outperforms
It followed data from Cointelegraph Markets Pro and TradingView BTC/USD targeting $38,000 an hour after Wall Street opened on Tuesday.
Reaching $39,240, the pair quickly reversed course as Biden reaffirmed his plans, leading to an already strong rally in oil and other gains in stocks and risky assets.
“I announce today that the United States is targeting the main artery of the Russian economy,” he said at a press conference.
“We are banning all imports of Russian oil, gas and energy resources. This means that Russian oil will not be accepted in American ports and the American people will deal another powerful blow to Putin’s war machine,” he added.
Brent oil rose to $133 after the announcement, while US stocks didn’t have much to celebrate, with the S&P 500 down 0.5% on the same day as of writing.
Bitcoin, which is still within a known range, is still avoiding significant losses as it returned to $39,000.
I don’t know what will happen with the price ban imposed by the United States. Michael van de Poppe, a Cointelegraph contributor, said the natural reaction for USOIL is to increase a little more, while asset risk will decrease.
In fact, I think the opposite is what happens with the ‘buy the rumor, sell the news’ effect.
Meanwhile, gold took advantage of the latest development in the Russian-Ukrainian saga, jumping more than $2,000 an ounce to hit an all-time high.
XAU/USD for a week. Source: Trading View
Did the stock really go down?
Likewise, not everyone was completely convinced that stocks were expecting the worst in the future.
Related Topics: Bitcoin Remains Below $40K But Bitcoin Price Reaches Another All-Time High Against Russian Ruble
In what should be the silver lining for the Bitcoin bulls, popular analytics account BTCfuel pointed to an indicator of economic uncertainty linked to the stock market, suggesting that based on history, stocks may already have rebounded.
“During the 6 times this happened, the greatest uncertainty was during the Great Capitulation. Most importantly, the stock rose in the following months, averaging 18% after 3 months.”
The last and only significant event in Bitcoin’s life was the COVID-19 crash in March 2020 and its aftermath.