Possible Scenarios For Bitcoin, How The Market Has Reacted To Past Wars
28 Februar 2022 - 7:00PM
NEWSBTC
Bitcoin has been moving sideways around its current levels as the
war started by Russia with Ukraine rages on. The first crypto by
market cap could see more bloody days ahead, as uncertainty about
the outcome, sanctions to the Russian government, and their impact
across the market increases. Related Reading | Digital “Ukrainian”
for Sale: All Funds Will Be Spent on the Needs of the Army At the
time of writing, Bitcoin was trading at $38,284 with 0.7% profit in
the past 24-hours. However, it quickly managed to get above
previous resistance and trades at $40,561 with a 7.66% profit on
the daily chart. In a recent report published by QCP Capital, the
firm claims the Luna year of the Tiger has been marked by important
negative events which took their toll on global markets. These
include the Chernobyl Disasters, the Cuban Missile Crisis, the
Korean War, and now the Russian invasion of Ukraine. Due to the
international sanctions on Russia, its equity, bonds, and currency
have been heavily affected. This reaction, QCP Capital said, could
contribute with a rapid de-escalation of the conflict. Thus, buying
the Bitcoin dip as it stumbles back into previous lows could be a
profitable option for investors. QCP Capital reviewed the market
reaction to previous conflicts in an attempt to assess a potential
future reaction from the market. The report claims: Historically,
war-related sell-offs have been great buying opportunities,
particularly large-scale war involving superpower. In the Vietnam
war (1964) Gulf War (1991), Afghan War (2001), Iraq War (2003) and
Crimean Crisis (2014), markets saw positive returns for 3-6 months
after the invasion. The firm believes the current situation has
been following the pattern as Bitcoin and other assets seem to be
bouncing back. This situation could sustain itself, at least for
the short term, but QCP Capital recommends cautions as there are
many potential global headwinds. Daniele Casamassima, CEO at Pure
Fintech told NewsBTC the following on the current situation: This
uncertainty in the crypto market is further hindered by the fact
that there is now a close correlation between financial markets and
global crypto markets. Break Or Bounce, Why Bitcoin Could Follow
Old War Patterns A similar situation occurred in 2001 with the U.S.
invasion of Afghanistan, the report said. At that time, the market
bounce back for 3 months, and then returned to a downtrend that
broke previous lows. For Bitcoin, this scenario could lead it to
revisit the low $30,000 or break below to last year’s low around
$28,880. One key different with previous conflicts, as QCP Capital
noted, is the imminent hike in interest rates from the U.S. Federal
Reserve. In 2021, interest rates were at 6.1% and today they seem
to only trend to the upside which could negatively impact global
markets. Others believe the opposite, if the conflict extends, the
FED and other central banks could used it as an excuse to delay any
shift in monetary policy. Related Reading | TA: Why Bitcoin Must
Close Above $40K For Trend Reversal Casamassima added the following
on a potential bullish thesis for Bitcoin: The digital currencies,
although badly affected at the moment, in the long run could become
the only feasible option for those people that are the most
affected by new economic sanctions. Therefore the bear market could
turn into a bull market.
BOND (COIN:BONDDUSD)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
BOND (COIN:BONDDUSD)
Historical Stock Chart
Von Apr 2023 bis Apr 2024
Echtzeit-Nachrichten über BOND (Cryptocurrency): 0 Nachrichtenartikel
Weitere BOND News-Artikel