Bitcoin inches past $38K as Wall Street opens to strange calm on Russia sanctions

Bitcoin (BTC), which was then $38,000, climbed to that level as Wall Street opened on February 22 in a tension over geopolitical instability.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Bitcoin tipstoes around macro cues

Cointelegraph Markets Pro and TradingView data showed a calm start to the Wall Street session for stocks and crypto.

Fears of an explosive bout of volatility following the announcement by Vladimir Putin on February 21 that he would recognize two separatist republics in Ukraine were high.

Although sanctions were still being issued at the time this article was written, it was assumed that they were about to fuel the fire, but there was very little movement on the day.

Thirty minutes after trading started, the S&P 500 was almost flat. This left Russian markets as the biggest losers and gold the clear winner.

Michael van de Poppe, a Cointelegraph contributor, previously predicted that the market would open in red. He then anticipated that the market would immediately bounce up on risk-on assets and experience a slight correction for gold.

Scott Melker, a fellow trader and analyst, meanwhile focused his attention on the potential influence of the Russia-Ukraine crisis on policy at the United States Federal Reserve.

JPMorgan, a banking giant, believes that a potential conflict could cause the Fed to abandon its plans for interest rate increases this year.

Lol War could mean more stimulus and printing = better for assets. It’s true. https://t.co/giYBSc9U6v
— The Wolf Of All Streets (@scottmelker), February 22, 2022

According to JPMorgan analysts, the trigger for a Fed review would be commodity price increases. This is according to a February 22 note.

They wrote that Russia-Ukraine tension poses a low risk to U.S. corporate earnings, but that an energy price shock caused by an aggressive central bank pivot focusing on inflation could further dampen investor outlook and sentiment.”

The sanctions were resisted on economic retaliation. Russia’s largest state-owned banks, Sberbank, and VTB, were left unaffected.

Bitcoin traders take one step at a while to recover

Anbessa, a popular trader in Bitcoin, meanwhile avoided calm as BTC/USD conformed with expectations without a significant trend violation.

Related: Bitcoin Mayer Multiple Returns to July 2021 Levels in Fresh Sign $37K BTC Is a Long-Term Buy

He said that a potential support/resistance switch near $37,000.700 was possible. This will hopefully become an important feature in the longer timeframe chart.

You don’t need to worry about how high the #BTC pump is in the short term if you expect HTF S/R flip. Patience is a virtue. Today, #BTC was able to follow the projection. After hitting $45,8k, your Guru may panic but you need to remember that throwbacks can be healthy. Waiting for confirmation or SL hits. https://t.co/3abE4jaZLu pic.twitter.com/gFIr7G8FSZ
— ANBTCESSA, @Anbessa100 February 22, 2022

Cointelegraph reported that Bitcoin and other altcoins are still not on mainstream consumers’ radars. However, large-volume institutional players and whales continue to be significant participants.

“If we are losing new users, but still have heavy retail outflows and dilution. There is no recovery. Perhaps for BTC. Pentoshi, a fellow trader, added that alts are not far out on risk,” in his discussion about the macro environment.

https://cointelegraph.com/news/bitcoin-inches-past-38k-as-wall-street-opens-to-strange-calm-on-russia-sanctions