Russia never made its intentions clear about invading Ukraine. The West, however, predicted that it could happen any time in the middle of February 2022.
Geopolitical tensions have always had an adverse effect on markets across the globe.. The tensions have affected the price of Cryptocurrency, especially Bitcoin.
BTC Rises As Russian Troops Return To Their Bases
In complete contrast to what the United States of America was concerned for, Russian troops recently started to withdraw from the Russian-Ukraine border.
Moscow had deployed nearly 100,000 troops on the border, but the capital now claims that the troops are withdrawing as they have concluded the military drill. This has taken the price of BTC to more than $44,000. The value is expected to hover at around $72,000 by the end of 2022. Read this forecast to know more about the Bitcoin future prediction, and whether it will continue to hold its status as “digital gold.”
Meanwhile, BTC price continues to trade above 4.24% of its value in the past 24 hours.
Concerns of invasion still prevail with the Whitehouse preparing itself for Russia’s invasion at any time during the middle of February 2022.
Officials of NATO are not impressed with the statements being issued by Russia. They wait for Russia’s army personnel to present valid evidence of withdrawal. The foreign ministry of Ukraine has also demanded a piece of evidence that clearly justifies the withdrawal of the Russian troops.
There is, one can presume, a slight ray of hope that the Russia-Ukraine crisis may finally slow down.
However, another factor has lined up to leave a huge impact on the price of BTC. That factor is the hike in interest rate by the US Federal Reserve.
A hike in the interest rate by the US Federal Reserve, even in bits and pieces, may force traders to leave the crypto space. Officials say that the move is necessary to control inflation, ensuring that American households are again able to spend only a reasonable amount.
Statistics do look concerning with the Consumer Price Index standing at 7.5% in the previous month. The Consumer Price Index figure is the fastest in the past 40 years.
Inflation in the United States of America is alarming as American households have reported having witnessed an increase of $250 in their monthly expenses.
Every measure that needs to be taken to rectify the inflation rate is necessary.
The Russia-Ukraine tension has already hit Wall Street and pulled BTC from its recent high of $45,000. BTC and other cryptos may have to take another hit after the US Fed hikes the interest rate but at least inflation will remain under control.
Having said that, traders who are bullish about Bitcoin will face challenges to take BTC beyond $45,000 for a while.