Modern Slave
  • Home
  • Bitcoin
    Crypto Derivative Volumes Saw Speedy Growth as Prices Rose in January

    Crypto Derivative Volumes Saw Speedy Growth as Prices Rose in January

    Bitcoin, Ethereum and XRP Price Trends Could Be Revealed Today

    Bitcoin Soars as Skepticism Dominates Crypto Market Scene

    Bitcoin Price in the Red for Fifth Straight Day

    Bitcoin Price in the Red for Fifth Straight Day

    Bitcoin Miner Digihost Completes Controversial Power Plant Acquisition, Doubling Energy Capacity

    Bitcoin Miner Digihost Completes Controversial Power Plant Acquisition, Doubling Energy Capacity

    Cardano Price Surges on SundaeSwap DEX Catalyst

    Cardano DEX SundaeSwap Floats First On-Chain Governance Proposal

    Fan Token Project Chiliz Rolls Out Layer 1 Blockchain, Token Surges 20%

    Fan Token Project Chiliz Rolls Out Layer 1 Blockchain, Token Surges 20%

    Three Arrows’ Founder Refused to Comply With Subpoena, Stonewalling Probe, Court Told

    Three Arrows’ Founder Refused to Comply With Subpoena, Stonewalling Probe, Court Told

    Here’s Why Artificial Intelligence Focused Cryptocurrencies Are Vastly Outperforming Bitcoin

    Here’s Why Artificial Intelligence Focused Cryptocurrencies Are Vastly Outperforming Bitcoin

    Komainu Receives Provisional Virtual Assets License in Dubai

    Dubai Mandates Licensing for Crypto Companies as It Sets Out Regulatory Requirements

  • Blockchain
  • Celsius
  • Crypto Mining
  • Ethereum
  • Exchanges
  • Forex Trading
  • Market
  • Regulation
  • More
    • XRP
    • Stellar
    • Store
  • Home
  • Bitcoin
    Crypto Derivative Volumes Saw Speedy Growth as Prices Rose in January

    Crypto Derivative Volumes Saw Speedy Growth as Prices Rose in January

    Bitcoin, Ethereum and XRP Price Trends Could Be Revealed Today

    Bitcoin Soars as Skepticism Dominates Crypto Market Scene

    Bitcoin Price in the Red for Fifth Straight Day

    Bitcoin Price in the Red for Fifth Straight Day

    Bitcoin Miner Digihost Completes Controversial Power Plant Acquisition, Doubling Energy Capacity

    Bitcoin Miner Digihost Completes Controversial Power Plant Acquisition, Doubling Energy Capacity

    Cardano Price Surges on SundaeSwap DEX Catalyst

    Cardano DEX SundaeSwap Floats First On-Chain Governance Proposal

    Fan Token Project Chiliz Rolls Out Layer 1 Blockchain, Token Surges 20%

    Fan Token Project Chiliz Rolls Out Layer 1 Blockchain, Token Surges 20%

    Three Arrows’ Founder Refused to Comply With Subpoena, Stonewalling Probe, Court Told

    Three Arrows’ Founder Refused to Comply With Subpoena, Stonewalling Probe, Court Told

    Here’s Why Artificial Intelligence Focused Cryptocurrencies Are Vastly Outperforming Bitcoin

    Here’s Why Artificial Intelligence Focused Cryptocurrencies Are Vastly Outperforming Bitcoin

    Komainu Receives Provisional Virtual Assets License in Dubai

    Dubai Mandates Licensing for Crypto Companies as It Sets Out Regulatory Requirements

  • Blockchain
  • Celsius
  • Crypto Mining
  • Ethereum
  • Exchanges
  • Forex Trading
  • Market
  • Regulation
  • More
    • XRP
    • Stellar
    • Store
No Result
View All Result
Modern Slave
No Result
View All Result
Home Forex Trading

Bitcoin Pinned Around $39,000 as Ukraine War Proves a Blessing and a Curse

by Source in article
March 16, 2022
in Forex Trading
0
Bitcoin Pinned Around $39,000 as Ukraine War Proves a Blessing and a Curse

Bitcoin has been trading in a range since late January when fears about sky-high inflation took hold over the markets and tensions between Russia and Ukraine first started to escalate. The sideways pattern isn’t showing any signs of breaking up, so why is the price so unusually disciplined at such a tumultuous period for financial markets?

The halving effect

The price of Bitcoin – still the largest cryptocurrency by market cap – exploded higher in 2020 and 2021. Whilst the rising popularity of Bitcoin, both as an asset class as well as its use as a payment method, undoubtedly magnified this spectacular growth, the main driving force behind this rally was likely the halving that takes place every four years, and which last happened in May 2020.

In previous such occasions in 2012 and 2016, the price also rallied, though, with a slightly longer lag from the date of halving, which was then followed by a steep correction. Within this context, Bitcoin’s downfall from its all-time high of $69,000 set in November 2021 is to have been expected. Nonetheless it’s still very puzzling why Bitcoin and the other major cryptocurrencies have been consolidating for so long when volatility has been extremely elevated in the broader markets.

Not much of a safe haven

The price bottomed at a six-month low of $32,950.72 on January 24, halting a two-month slide. But despite some very choppy trading since then amidst the geopolitical storm with Ukraine, it has been unable to rise further than $45,850 or even brush new lows, instead fluctuating around $39,000.

Many market pundits were hoping that Bitcoin would shine as a safe haven from the war. But although cryptocurrencies have come under the spotlight, with the Ukrainian government encouraging donations in cryptos and many Russians using them to evade sanctions, the latter may also be having the opposite effect. Some wealthy Russians are reportedly liquidating their digital coins as they find themselves frozen out of their other assets due to Western sanctions.

Bitcoin’s increasing adoption by institutional investors may also be working against it as the fact that it has not proven to be a good inflation hedge nor a ‘digital gold’ during this torrid time for the markets suggests portfolio managers see it mostly as a speculative trade than anything else.

Regulatory worries have eased lately

On the positive side, both the European Union and United States seem to be only taking baby steps as far as regulating cryptocurrencies is concerned. All the indications are that most governments don’t want to stifle innovation in the field of digital currencies and blockchain technology despite ongoing concerns about fraud and money laundering. This bodes well for Bitcoin, at least in the medium term.

When factoring in all these different forces, it appears that they are negating each other. But what could also be keeping the floor and ceiling of the range in place is dip buyers stepping in to take advantage of the discounted price, while those that entered the market when Bitcoin was near record highs are possibly selling it at every opportunity that the price spikes higher to minimize their losses.

Is the price getting ready for an upside break?

It is encouraging to note, however, that during this consolidation phase, not only is the long-term ascending trendline still in place, but a short-term uptrend has also been forming. With momentum indicators like the Relative Strength Index (RSI) looking fairly neutral, an upward push seems more likely than a downward one, assuming of course that the 50-day moving average doesn’t get in the way.

Source link

Recommended

Here’s What’s Next for XRP, Binance Coin, Cosmos and One Low-Cap Altcoin, According to Popular Analyst

Here’s What’s Next for XRP, Binance Coin, Cosmos and One Low-Cap Altcoin, According to Popular Analyst

8 months ago
Hardware Wallet D’CENT Offers Multiple Ways Which Can Help Users Bypass Crypto Exchanges – Press release Bitcoin News

Hardware Wallet D’CENT Offers Multiple Ways Which Can Help Users Bypass Crypto Exchanges – Press release Bitcoin News

9 months ago

Popular News

    Crypto Investors Can Purchase Bankruptcy Put Options to Protect Funds on Binance, Coinbase, Kraken Crypto Exchanges

    Bitcoin ATM Operator Coin Cloud Files for Bankruptcy With Liabilities of $100M-$500M

    February 8, 2023
    Bankrupt Alameda Research wallets resurrect and transfer millions of FTT tokens

    Bankrupt Alameda Research wallets resurrect and transfer millions of FTT tokens

    February 8, 2023
    Craig Wright Loses Bitcoin Copyright Claim in UK Court

    Craig Wright Loses Bitcoin Copyright Claim in UK Court

    February 8, 2023

    Must Read

    • Bitcoin ATM Operator Coin Cloud Files for Bankruptcy With Liabilities of $100M-$500M
    • Bankrupt Alameda Research wallets resurrect and transfer millions of FTT tokens
    • Craig Wright Loses Bitcoin Copyright Claim in UK Court
    • Crypto Derivative Volumes Saw Speedy Growth as Prices Rose in January
    • Binance Is Organizing a Consortium to Try to Rebuild Trust in Crypto: Source

    Category

    • Bitcoin
    • Blockchain
    • Celsius
    • Crypto Mining
    • Ethereum
    • Exchanges
    • Forex Trading
    • Market
    • Regulation
    • Stellar
    • XRP

    Important Pages

    • Home
    • Privacy Policy
    • Terms and Conditions
    • Social Media Disclaimer
    • Medical Disclaimer
    • FTC Compliance
    • Earnings Disclaimer
    • DMCA Compliance
    • Copyright Notice
    • Anti-Spam Policy
    • Contact Us

    About Us

    We provide latest News related to CryptoCurrency.

    • Home
    • Contact Us
    • Terms and Conditions
    • Privacy Policy
    • Copyright Notice

    © 2021 Modernslave.io

    No Result
    View All Result
    • Home
    • Bitcoin
    • Blockchain
    • Celsius
    • Crypto Mining
    • Ethereum
    • Exchanges
    • Forex Trading
    • Market
    • Regulation
    • Stellar
    • XRP

    © 2021 Modernslave.io

    By continuing to browse the site you are agreeing to our use of cookies
    x Logo: Shield Security
    This Site Is Protected By
    Shield Security →

    Subscribe For Latest Updates

    Sign up to best of crypto news, informed analysis and opinions on what matters to you.

    Invalid email address
    We promise not to spam you. You can unsubscribe at any time.
    Thanks for subscribing!