Bitcoin and the entire crypto market ended the last two days with a huge sigh of relief and rallied up to $42,000, since Ukraine and Russia agreed to launch a peace talk, though no breakthrough till now. According to PricePrediction chief analyst, Bitcoin market is facing a number of sell-side headwinds.
Aggregated crypto marketcap rebounds by $60 billion since yesterday. Yesterday the premier cryptocurrency Bitcoin dipped down below to $37k, after hitting a multi-week high of $45k on Mar 2.
Following a downturn, Bitcoin is back at $41k as it trades fractionally below $42k. Precisely, trading at $42.2k the Bitcoin is down by 10% over the past week. However, during the past 24-hours the coin has actually recovered a bit. Resultantly, many mainstream coins are currently in a green zone. With Waves, the world’s 47th largest token by market cap, emerging as the biggest gainer.
As for the long term, the Bitcoin is down 6% in the last 30-days, showing a very dusky picture. During the past 30-days period, Bitcoin crossed $45k 3 times only. Whereas, it remained below $40k 10 times. Now, what the stated data shows is that the Bitcoin has been in bears for quite some time now.
Although many analysts opine otherwise, the data shows that since the start of the year 2022, the BTC has never been able to make any significant price jumps. Having gone through the worst January ever, Bitcoin could not recover from it yet.
“Moreover, btc’s recent price behavior has a geopolitical angle to it as well. As citing the Russia-Ukraine war, analysts had projected Bitcoin to go upwards. Largely because of the choking of the traditional financial system in Russian and Ukraine and also because of rising inflation,” one economist said.
On account of Russia‘s cut off from Swift many international payment companies e.g. Mastercard and PayPal have halted their operations in the country. As a consequence, the crypto trading soared in the conflict zone.
Considered as a hedge of inflation, Bitcoin price skyrocketed in the environment of high inflation and low interest in the past 2 years. However, as the Federal Reserve and the global major central banks tighten monetary policy, the inflation will go down. And in theory, the higher interest rates will lead to a lower appetite for high-risk assets such as bitcoin.