Following Russian President Vladimir Putin’s declaration of war on Ukraine on February 24, 2022, the crypto market had a fast sell-off, resulting in £382 million in losses, followed by a price rise.
Despite geopolitical tensions, bitcoin has risen 35% since the Russian invasion, proving to be a good safe-haven asset for market speculators.
Bitcoin’s price is currently trading at £36,382.72, up 6.9% in the last 24 hours and 15.5% in the preceding week, not far away from the £26,711-£34,342 ranges it was trading in as of January.
In comparison to the S&P500, which has gone down 4.7% in 2022, bitcoin is up almost 2% for the year.
According to Fadi Aboualfa of Copper, bitcoin may hit the next resistance level at £39,700, after which it might reach £49,600. Bensignor Investment Strategies’ Rick Bensignor predicted Wednesday that bitcoin is “on the verge of a 20% run.”
Other popular cryptocurrencies are also on the rise, with ethereum up 3.7% to £2,560, and SOL, DOGE, and AAVE up 5.5% to 9.4%.
It’s probable that BTC’s uptrend is due to comments by US Treasury Secretary Janet Yellen that crypto offers advantages. According to social media speculations, trade was backed by whales from the Luna Foundation Guard, which plans to back the Terra blockchain’s native token with over £7.6 billion in bitcoin reserves.
As central banks withdraw stimulus packages, bitcoin has been treading in a tight band, making available less disposable cash for riskier assets like bitcoin. Bitcoin and ether have also risen in lockstep with US markets, albeit by lower proportions. “As we test the top of the 2022 trading range for the fifth time, this another one of these Bitcoin moments when the narrative could swiftly change and investors pile in, propelling the bitcoin price higher,” says Antoni Trenchev, co-founder of Nexo.
Bitcoin has been overbought, according to Bespoke Investment Group, as it has traded significantly over its 50-day moving average of £31,400 in the last week. In general, an overbought position precedes a decline in prices for many assets, whereas an overbought state precedes an upturn in prices for bitcoin, according to the company.