Global macros strain the decline from Bitcoin to $ 40,000, which drops to BTC mining
Global macros strain the decline from Bitcoin to $ 40,000, which drops to BTC mining
- Bitcoin and crypto remain susceptible to volatility in view of the current geopolitical uncertainty.
- Despite the severe sanctions, the crypto activity that is stuck in ruble is declining.
After his pump at the beginning of the week up to $ 45,000, the Bitcoin price has entered a strong correction today. Together with the wider crypto market, the BTC price fell 5 percent to $ 40,000. On the one hand, the war between Russia and Ukraine from the Fed demands a certain amount of money -political relaxation. However, the steep increase in inflation requires the opposite, namely a monetary tightening.
On Thursday, the attack on Russia's attack on the Ukraine nuclear power plant had put the crypto room under great pressure. The European stock market is under the greatest pressure of the current situation. The German Dax fell by 500 points or 3.60 percent than this article was written. Market commentator Holger Zschaepitz states:
From the youngest high, the index has lost 17 %, much more than the S&P 500. Investors are turning their back on Europe because the risk of stagflation increases. So the comeback of Europe failed again.
Bitcoin, that tried to decouple from the wider stock market, seems to be in the trap again. The Bitcoin Fear and Greed Index leans towards the anxiety zone. At the current price of $ 41,500 there is much more uncertainty among the market participants.
On the other hand, the Bitcoin-Mining difficulty corrected for the first time since November 2021 by 1.5 percent. This was the first negative decline after six successive positive difficulty adjustments. The Bitcoin difficulty adjustment takes place every two weeks.
The Russian Bitcoin trade volume is declining
During the rally at the beginning of the week, many market analyst believed that the recent increase was due to the increase in the Russian crypto trade volume. On the other hand, the narrative was that Russia uses crypto to avoid sanctions. But that doesn't seem to keep the ground completely.
The crypto activity that has been ruble has declined since the first day on which Russia explained the war on Ukraine. According to the blockchain analysis company Chainalysis, the crypto activity, which has rubles, was $ 70.7 million on February 24. This fell by 50 percent to $ 34.1 million on March 3.
Madeleine Kennedy, Senior Director of Communications at Chainalysis, said: "This is a fraction of the volume that was recorded during the all-time high of the Russian crypto trade volume in May 2021". In the Wednesday report, Citi analysts, including Alexander Saunders, added:
The Russian volumes have so far been relatively low, which indicates that the price movement is more due to the positioning of investors for an expected increase in demand from Russia than to Russian demand itself. It will require a significant fleeing capital to move the needle.
We can expect persistent volatility in view of the continuing geopolitical uncertainty. On the other hand, $ 40,000 remain strong support. If Bitcoin (BTC) falls, we can see a further decline in the range of $ 33,000 to $ 35,000.
Source: Crypto-news-flash.com
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