Over the weekend cryptocurrencies were in the red. Monday morning bitcoin was trading at $37,800, it had gone down 3% from where it stood over the weekend. Ether which was trading at $2,500 also was down by roughly 3%. Similarly, many altcoins happened to also be in the red.
Since Russia has been in attack mode Bitcoin and Ethereum have been fluctuating. Bitcoin has gone from the $37,000 to $45,000 price range that it had been in January.
The CEO of BitBull Capital Joe DiPasquale had something to say regarding the weekend in red. He wrote to Coindesk “It’s been another range-bound, indecisive week for Bitcoin and the crypto markets where the market leader has failed to make any meaningful headway on the upside.” He went on “The current price action is typical during bearish phases, as was seen in May, June, and July, and often precedes strong price bottoms.”
War in Russia:
Cryptos have mainly followed the performance of equities markets, which have fallen dramatically in recent months and been more volatile as Ukraine has been raging fire. This has affected the global economy that already had what to deal with. Logistical constraints, labor shortages for critical roles, rising oil prices, and broader inflationary problems are a few.
In addition to the weekend in red affecting crypto prices, U.S. gas prices also rose. They rose to $4.33 per gallon breaking the previous record of $4.08 during the Great Recession in 2008.
The U.S. Labor Department’s Bureau of Labor Statistics said on Thursday that inflation in the United States surged in February to a new four-decade high of 7.9 percent. Investors are concerned that sanctions on Russia, a key global supplier of oil, could drive up prices even more.
DiPasquale added “The teetering of crypto prices near a price point that led to lows over the last month is also related to uncertainty over the military actions between Russia and Ukraine” He went on “Just as equities markets have been vacillating, crypto markets have largely done the same.”