Even as global markets in Asia and Europe fell substantially on the threat of Western measures to punish Russian oil, Bitcoin halted recent losses on Monday, holding about $38,000.
On the potential of a Russian blacklist, oil prices soared to their greatest level since the 2008 financial crisis, raising fears of another inflation spike. The stock market reacted negatively, with major Asian bourses falling more than 2%. The impact was felt on foreign exchange markets as well, with key oil-importing countries’ currencies, such as India and Indonesia, suffering significant losses.
Gold prices soared beyond $2000 as investor demand for safe-haven assets increased.
Bitcoin is still supported by strong fundamentals.
At least for the time being, broader market weakness does not appear to have spilled over into Bitcoin. Following a brief rise near $44,000, the world’s largest cryptocurrency was trading at a steady level.
KuCoin is where you’ll find the next crypto gem! Sign up to receive a $500 welcome bonus when you sign up.
The token was also trading considerably above the year’s lows, which were set in January at $33,000. It had dropped to $34,000 in February after a sharp drop in February due to mounting fears of a Russia-Ukraine confrontation.
Like the broader equity markets, cryptocurrency markets have also been bleeding over the last few weeks. Investors should keep in mind that solid fundamentals still back the digital coins and institutional investors enter crypto markets with each passing day.
Naeem Aslam, Chief Market Analyst at AvaTrade
Public opinion remains negative
With rising prices, no signs of de-escalation between Russia and Ukraine, and a Federal Reserve rate hike scheduled for next week, traders expect crypto assets to lose even more value. The largest trading volumes in the crypto market continued to be seen in stablecoins, particularly Tether.
The Bitcoin fear and greed index showed a high level of dread, indicating a pessimistic mood. Sentiment was further shattered when Andre Cronje, a well-known DeFi developer, abruptly announced his departure, sending numerous altcoins tumbling. In the last 24 hours, Fantom (FTM) and Anchor Protocol (ANC) have lost 18% of their value.