This week amid tensions between Ukraine and Russia and the possibility of a 50-point increase in interest rates by the Fed in March. bitcoin seems to be of critical importance.
Bitcoin, the world’s largest cryptocurrency by market value, has long been described as a safe haven by its advocates.
Despite this, for the past few months, BTC has been acting similarly, especially with high-risk stocks.
“Bitcoin Price May Be Affected by US Stock Exchange”
Japanese Bitcoin exchange Bitbank cryptocurrency market analyst Yuya Hasegawa said:
“BTC is described by some as a stateless currency. Indeed, in the past we see BTC performing well in geopolitical tensions. Therefore, we could think that there would be a demand by those who see this asset as a safe haven. However, in the current situation, with the changes experienced, BTC has become fragile against the US stock market. Therefore, before the tension between Ukraine and Russia begins to end, BTC investors may not feel comfortable.”
According to the data, the BTC price is trading at 10% lower than at the beginning of the year and 38% lower than its record in November.
“We Can Stay in the 8-9 Month Bear Market”
The stagnation in technology stocks due to the interest rate hike in the USA may indicate that the current crypto money winter may continue for a few more months, according to experts.
On the subject, Chris King, CEO of Eaglebrook Advisors, expressed his thoughts as follows:
“If we’re in a bear market right now, we could see sideways or downsides for another 8 or 9 months. I think this helps reduce the number of tourists in the market and make room for real actors who want to use this technology.”
*Not investment advice.