Bitcoin Gains Momentum as Biden Slaps Russia with Sanctions
Bitcoin (BTC) entered the green zone after U.S. President Joe Biden revealed new sanctions meant to cut off Russia from western finance, according to Bloomberg.
The leading cryptocurrency was up by 3.66% in the last 24 hours to hit $38,151 during intraday trading, according to CoinMarketCap.
Bitcoin experienced headwinds on Feb 18 that drove the price below the psychological level of $40,000 for the first time in two weeks. This happened amid intensified tension between Ukraine and Russia that a full-blown war was inevitable.
Russia had marshalled more than 100,000 troops to the border. This move led to volunteer groups and NGOs in Ukraine receiving Bitcoin donations to support their army with drones, medical supplies, and military gear.
The new sanctions against Russia were instigated by Russian President Vladimir Putin’s move to sign a decree recognizing two breakaway regions of eastern Ukraine as independent entities. Biden also announced that the U.S would aid the countries in the Baltic region and Poland with additional troops and supplies.
The Ukraine-Russia tension has prompted geopolitical factors that have not been friendly to the crypto market. Things have not been rosy to the extent that some analysts have predicted that Bitcoin might nosedive to the $30K region, a scenario not seen since May last year.
Nevertheless, the $36K-$37K zone has emerged as significant support, which must be sustained to avoid further slips.
With Bitcoin having surged to the $38,000 area, it needs to flip it to support because it is a high resistance zone proved to be a headache in January. Furthermore, the geopolitical factors playing out will majorly determine BTC’s next move.
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Short-Term Holders Dominate Primary Driver for Bitcoin's Liquidation amid Ukraine Crisis