The financial and crypto markets were severely affected shortly after Putin ordered a “special military operation” on Ukrainian territory. Bitcoin price currently hovers around $39,000 after reaching above $40,000, which is even higher than before the conflict. Most alternative coins are also green, while the crypto market cap reached $1.77 trillion (a 3.3% increase over the last day).
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price hits $40,000 then drops to $38,000
However, markets are pricing futures, and after Biden’s speech confirmed that the US would not impose any severe sanctions – global markets and cryptocurrencies quickly recovered. Thursday saw a 7% gain on Wall Street, and Friday also saw a spike in Wall Street displays.
The following uncertainty over whether NATO members will send troops to Eastern Europe is not a bullish factor for bitcoin, causing a lot of uncertainty. Bitcoin lost a significant portion of its value after Russia launched a military campaign in Ukraine. Specifically, the coin has plummeted to nearly $34,000 (its lowest price in the past 30 days).
However, the main cryptocurrency started its rally in the early hours of Thursday when US President – Joe Biden – asserted that US forces would not be sent to Ukraine to engage in a direct military conflict. Instead, the politician vowed to impose severe financial sanctions on Russia and limit the country’s ability to “do business in dollars, euros, pounds, and yen to become part of the global economy.” Immediately after his announcement, the price of bitcoin increased significantly.
In the 36 hours that followed, the asset’s USD value climbed even higher, topping the $40,000 point earlier today. Currently, it trades around $39,000, while its market cap stands at $743 billion.
It can be said that its price increase is also due to other countries’ approaches to the conflict. The EU, Japan, and Australia have revealed that they will not be sending their troops to Ukraine for the time being. Like the United States, these countries have vowed to impose new currency and embargo sanctions on Russia.
As it often happens, along with Bitcoin’s rise, most altcoins also head north. While the main cryptocurrency is up just 1% from a day earlier, Ethereum’s USD value has increased by more than 6% and is currently trading at $2,750.
XRP/USD 4-hour chart | Source: TradingView
Terra (LUNA), Polkadot (DOT), and XRP are among the best performing assets, as they are all up more than 10%. Some of the top tokens by market capitalization, including Binance Coin (3%), Solana (3%), Dogecoin (4%), and Cardano (5%), have also weathered post-war declines.
Total crypto market capitalization hit $1.77 trillion (up more than 3.3% from the previous day), meaning it has regained around 700 million.