With the cryptocurrency space being such an angsty place, it’s no surprise that patience is rare. Only two weeks ago, Bitcoin rose 15%+ to near $42,000 only for traders, and retail investors alike become frustrated at how rangebound this world’s most significant digital currency has been in recent days with not much movement up or down since then aside from some tiny fluctuations here and there.
“Do something!” the crowd cried out in unison as they watched their investments plummet towards $43,000. But be careful what you wish for because yesterday’s latest pullback has put The reverse track to Bitcoin. The potential for ripple effects across all markets could see the cryptocurrency test its resistance at $38,000
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Markets are monitoring developments in Eastern Europe closely, where Russia is playing chicken at their borders. This is leading investors and traders alike into a state of panic as they await further developments on how this will resolve itself; however, it’s not just Bitcoin that’s affected either. The S&P 500 closed down 2% yesterday due to fears about war becoming increasingly likely across there too. All because one man won’t back down from what he believes his country needs – even if its means risking everything else.
Russia is the key factor behind Bitcoin Trend
With the probability of World War III, plus potential rate hikes coming into fruition – it’s the last call at an already fading party. In these economic times of unprecedented economic hardship, the Federal Reserve has shown incredible generosity in their entertainment budget.
Crypto markets are stricken by fear as investors see their investment fleeing the devaluing fiat currency. Jerome Powell is the Fed chairman and signaling an aggressive shift toward inflation. Bitcoin’s prime narratives are coming undone, and it’s no longer a haven for escaping this ever-debasing world of currency.
When everyone else is panicking, it’s an excellent time to buy. A famous quotation from Warren Buffet goes, “Be fearful when others are greedy and be greedy when others are fearful” – well, that seems pretty appropriate right now with Bitcoin closing in on $38,000. However, the high resistance to $43,000 seems like an impossible task at this time.
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Russia has a reputation for being unpredictable in the area of Bitcoin. The price of bitcoin could quickly drop or rise by as much as a few thousand dollars if the Russian president Putin makes a statement. The country’s leader has constantly been making headlines for years. As long as new developments are made about what the leader might have to say regarding international issues, it will be a constant feature of headlines. Such as alliances with other countries’ leaders.
Featured image by Pixabay, chart from Tradingview.com