Bitcoin (BTC) begins a new week in the shadow of a new geopolitical conflict. What are the main hindrances investors face?
In what has evolved an unrecognizable macro-environment approximated to even days ago, Bitcoin is feeling the stress like many other assets.
The situation in Ukraine is wreaking havoc on global markets, and developments can upend sentiment within hours or only minutes.
The timing has slammed Bitcoin, too. Its “haven” quality is witnessing a severe test, as investors look for safety and fiat bagholders look for an exit.
As the overriding impact this week, we are looking at what might lie in store for Bitcoin in the short term as it holds up against complicated and almost surreal macro events.
Ukraine war overwhelms
This week, the Russia–Ukraine conflict directly drives market performance.
Having only emerged in its current form five days ago, the situation stays in a state of constant flux, sanctions keep coming, both sides and their partners continue to knuckle down, and markets respond to new threats and probabilities.
Spot price action encounters macro force majeure
With traditional markets being highly volatile on their respective Monday opens, guessing how Bitcoin will manage on the shortest timeframes is a real problem.
Correlations aside, Bitcoin has so far tended to remain in a relatively tight range, and $40,000 is a clear resistance zone for bulls to beat.
Another month, another red candle
Sunday’s close did not go according to schedule for Bitcoin market watchers.
A last-minute drive took away the odds of closing the week and the month past $38,500 and thus gave the history books their first four straight monthly red candles since the 2018 bear market.
