Bitcoin prices fell by 3.8% over Saturday and Sunday. They reached a low of $38,000 on Monday. However, over 24 hours since then, it has increased to around 39,000 dollars while Ethereum’s value decrease was 4.5%. Other top ten cryptocurrencies, such as XRP or LUNA, declined by 2% to 6.8% respectively.
According to CoinMarketCap, the total market capitalization for crypto markets fell by 3.8% to $1.71 trillion. Bitcoin’s dominance index sunk lower, from 42.9% to 42.3% over this past weekend.
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Cryptocurrencies are not immune to politics and the increasingly tense situation between Russia, European Union (EU) & the US. Russian users have been banned from registering with BTC.COM, which could trigger Bitcoin sales. This alternative financial system supports EU/US sanctions against Moscow while showing their initiative at times – Switzerland frozen assets if they fall under those restrictions.
Bitcoin was unable to overthrow the resistance of $45,000, and it slowly gained buyers while stock indices fell. It is possible that the fighting in Ukraine continues for at least two more weeks. That will likely put all risks assets under pressure, including bitcoin.
Kiyosaki Crypto Investment
The famous investor and writer Robert Kiyosaki have said that the US is “destroying” their dollar, calling for investing in gold. He recommends that bitcoin be used as a safety net asset in times such as these.
SkyBridge Capital is an investment firm founded by SkyBridge Capital. He believes bitcoin will surpass $100,000 in 2024. To date, he’s invested approximately one billion dollars in Bitcoins. Even proposals have been made to let institutional traders take part in this action by US senators of different political parties.
Switzerland’s Lugano has made bitcoin and Tether (the leading stablecoin) legal tender. It means people are able to use both cryptocurrency and Tether (USDT) for goods or services purchased from local businesses.
Bitcoin Momentum
With all of the recent recoveries, it’s been relatively stagnant on a day-to-day basis. This could mean there isn’t any real momentum behind these movements at this point in time or that we might expect another leg down soon enough.
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Any news that could affect the entire cryptocurrency market can have an impact on bitcoin prices. Anything from political changes to economic conditions, natural disasters or international conflict can have a dramatic impact on bitcoin prices.
Although the bears still have control of bitcoin, they might not be able to hold it for long. An analyst says that BTC plans to test the monthly 21 EMA yet again following this trend. This cannot last forever and could lead to a collapse that would see digital assets prices fall below $20K-24K.
Featured image taken from Pixabay. Chart from Tradingview.com