Investing.com – Le no longer seems affected by the risk of armed conflict between Ukraine and Russia. After pointing below $37,000 yesterday morning, the cryptocurrency has indeed hesitated around $38,000 since yesterday afternoon.
The (BTC) even rose slightly after US President Joe Biden announced new sanctions against Russia.
Why is Bitcoin not reacting to the escalation of tensions in Ukraine?
Mr Biden said, for the first time, at a press conference on Tuesday that he viewed Russia’s latest intervention in two breakaway regions of Ukraine as an “invasion”. He announced sanctions against Russia that would “cut off Western finance”, according to Bloomberg.
Mr Biden also said the United States would provide additional supplies and troops to countries in the Baltic region and Poland, according to Bloomberg, underscoring the risk of widening the conflict.
Investors in bitcoin and cryptocurrencies in general have closely followed the evolving tensions between Russia and Ukraine. However, if at one time it seemed that Bitcoin was falling in the face of the risk of conflict, and rising in the face of signs of relaxation, this was no longer relevant yesterday.
And that could be because investors believe that further escalation in the conflict could lead to the Fed becoming less hawkish than lately, which is a bullish factor for Bitcoin.
JP Morgan thinks the Russia-Ukraine dispute could set the Fed back
This is a possibility that was mentioned by the bank JPMorgan (NYSE:) in an analysis published yesterday, and which stipulates that the effect of a potential conflict could be to make the Fed give up raising rates too much aggressively this year.
In more detail, JPMorgan analysts believe that the trigger for a questioning of the Fed would take the form of a rise in commodity prices.
“Tensions between Russia and Ukraine represent low earnings risk for U.S. companies, but an energy price shock amid an aggressive inflation-focused central bank pivot could further hurt the economy. investor sentiment and growth prospects,” they wrote.
Bitcoin must retain this key support
From a technical point of view, we can notice on the daily chart that the rebound of Bitcoin yesterday was based on a support located around $ 36,300, and the breakout of which would constitute a bearish signal which could put the trough in sight. of January 24 just under $33,000, then possibly the psychological threshold of $30,000.
On the upside, a return above $40,000 is necessary to start improving Bitcoin’s profile, but only a return above $46,000 would confirm a bullish reversal of the underlying trend.
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