© Reuters.
Investing.com – The plunged 8% on Thursday amid broad selling of risk assets amid renewed fears of a Russian invasion of Ukraine. Indeed, crypto markets remain in fear of new geopolitical risks.
BTC is trading around $40,800, down about 40% from its all-time high in November. “Bitcoin is the ultimate risk asset, and an invasion of Ukraine would keep crypto selling pressure an additional 10-15% in the near term,” wrote Edward Moya, senior market analyst at Oanda,
President Joe Biden told reporters on Thursday that the threat of a Russian invasion of Ukraine is “very high” and said an invasion could happen “not now” but “within days.”
Investors are also on the lookout for any signs of the Federal Reserve’s aggressiveness in monetary policy tightening, with some now expecting around six interest rate hikes this year, although the Minutes from the January meeting released on Wednesday provided few new details.
“The outlook for bitcoin remains mostly bullish, but if the long-term growth outlook starts to take a bigger hit due to aggressive Fed tightening, institutional investors could lower their bets,” Moya wrote.
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