The price of Bitcoin fell 3.8% on Saturday and Sunday, reaching a low point in the day at $38,000. 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 like XRP and LUNA decreased by 2% and 6.8%, respectively.
The total capitalization of the crypto market decreased by 3.8%, to $1.71 trillion, according to CoinMarketCap. Bitcoin’s dominance index sunk lower, from 42.9% to 42.3% over this past weekend.
Related Reading | Bitcoin Drops Below $39,000 As Crypto Markets Tank Over The Weekend
Cryptocurrencies are not immune to politics and the increasingly tense situation between Russia, European Union (EU) & the US. The BTC.COM pool has banned registration by Russian users, which may trigger Bitcoin sales due to its association. 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 failed to overcome the strong resistance of around $45,000 and slowly attracted buyers as stock indices declined. The fighting in Ukraine may continue for another two weeks, likely pressuring all risky assets, including bitcoin.
Bitcoin started the day with a downtrend and is trading below $38,000 | Source: chart from Tradingview.com
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 also recommends bitcoin as a safe haven asset during times like these.
The founder of an investment company, SkyBridge Capital, is confident that bitcoin will reach $100,000 by 2024. He has invested about 1 billion USD in Bitcoins so far. There are even proposals to allow institutional traders to get in on this action through bills introduced by US senators from different parties.
The city of Lugano in Switzerland has recognized bitcoin and the leading stablecoin Tether (USDT) as legal tender. This means that people can use both cryptocurrencies to purchase goods or services from businesses within their borders.
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.
Related Reading | Bitcoin Fails To Establish Significant Demand, Why Price Could Fall To $20K
The bitcoin price is susceptible to any news that may affect the cryptocurrency market as a whole. This means anything from economic fluctuations, policy changes, international conflicts, or natural disasters can drastically change prices overnight.
The bears are still in control, but they may not have the strength to keep up their grip on bitcoin for much longer. Following this trend, BTC is gearing to backtest the monthly 21 EMA once again, says an analyst. Since this cannot hold forever, then a breakdown could happen that could see the digital asset price crumble to the $20K-$24K level.
Featured image from Pixabay, chart from Tradingview.com