Bitcoin is down, however, later recovering and regaining daily earnings on March 8th, when U.S. President Biden announced a complete ban on Russian oil imports. BTC/USD traded at $38,000 – an hour after Wall Street opened on Tuesday. It reached $39,240, and the pair quickly changed trajectory. Biden confirmed the plans, adding to the already substantial oil profits and putting further pressure on stocks and risk assets. According to a statement issued at the press conference, the United States is targeting the main artery of the Russian economy. The country bans all imports of Russian oil, gas, and energy. Therefore, Russian oil will no longer use in U.S. ports. The American people will deal another significant blow to Putin’s military machine by doing so.
The Brent crude oil price rose to $133 based on the announcement. U.S. stocks were not to be missed. The S&P 500 fell 0.5%. However, Bitcoin, which is still in the normal range, avoided a significant loss; it returned to the $39,000 mark. According to experts, the natural reaction would be that USOIL would increase further, while riskier assets would decrease.
Bitcoin and Geopolitical Tension
In parallel, gold took advantage of the latest Russian-Ukrainian situation; Accordingly, it returned above $2000 an ounce to reach an all-time high. Similarly, not everyone was wholly convinced that the stocks were ahead of the worst.
For Bitcoin bulls, the popular analytics report BTCfuel named an index of economic uncertainty related to the capital market; it indicates that the shares may have already reached a retreat. This happened six times; luck peaked during the significant capitulation. Most importantly, the stakes have risen in the coming months, after three months on average by 18%. It is worth noting that the last and only significant such case in the lifetime of Bitcoin was the March 2020 COVID-19 crash and its aftermath.
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