In an afternoon press conference, President Joe Biden announced that the US will impose further sanctions on Russia, limiting its ability to transact in dollars, euros, pounds, and yen in an effort to isolate Moscow from the global economy.
As institutional interest grows and more short-term investors trade bitcoin like other risk equities, cryptocurrency price movements have grown more connected to movements in other risk assets like stocks. Since bitcoin achieved a record high of roughly $69,000 in early November, cryptocurrencies have been under pressure. Bitcoin has lost over half of its value since then. As institutional interest grows and more short-term investors trade bitcoin like other risk equities, cryptocurrency price movements have grown more connected to movements in other risk assets like stocks.
“The current geopolitical crisis will undoubtedly have an influence on already-high commodity prices and worsen already-serious supply chain challenges, potentially raising inflation,” said Anto Paroian, chief operating officer of digital asset investment company ARK36. “This means the Fed and other central banks may be unable to modify their hawkish stance, and risk assets and cryptocurrencies are likely to fall further into bear market territory.”
Bitcoin could see lows around the $30,000 mark, according to Vijay Ayyar, vice president of business development and international at crypto exchange Luno, with the key threshold being the low of between $28,000 and $29,000 witnessed last July.
If bitcoin can stay above that level, it might reach new highs later this year, according to Ayyar. However, if the price falls below that, he believes bitcoin will plummet to the low $20,000 range.