The conflict between Ukraine and eastern pro-Russian rebels broke out on the 17th, making the war between Russia and Ukraine even more tense. US President Joe Biden warned that Russia may invade Ukraine “in a few days”. Bitcoin fell 8% in response. Analysts have warned that if Russia does invade Ukraine, the cryptocurrency could face a 10% to 15% decline.
MarketWatch and Kitco News reported that Edward Moya, a senior market analyst at Oanda, published a research report on the 17th, pointing out that Bitcoin is the ultimate risk asset. %.
Investors are also watching how aggressively the Federal Reserve is about to tighten monetary policy. Some traders now predict that the Fed could raise rates by six yards this year. While Bitcoin’s outlook is broadly positive, institutional investors may scale back their bets if the long-term growth potential is hit by aggressive Fed tightening, Moya said.
Moya also said that Wall Street is now in full de-risking mode, and Bitcoin is paying for it. Under the double blow of geopolitical risks and the central bank’s active interest rate hike doubts, the entire cryptocurrency market has fallen into a free fall.
Chris Weston, head of research at Pepperstone, said that the movement of cryptocurrencies once again shows that this is a highly volatile and high-risk asset.
St. Louis Federal Reserve President James Bullard’s latest remarks on the 17th again supported the Fed raising interest rates by a full percentage point in the next three meetings to fight inflation. He told CNN that the inflation target has been exceeded, the interest rate policy is still ultra-low, and the central bank is even buying assets. It is time to reduce easing.
According to CoinDesk quotations, as of 9:35 a.m. Taipei time on the 18th, bitcoin was at $40,678.10, down 7.75% from 24 hours ago; the year-to-date decline has expanded to 12.33%.