Bitcoin, crypto market dragged down by Russia-Ukraine tensions and Fed official’s hawkish remarks
After climbing above $45,000, Bitcoin was sent tumbling below $43,000 on Friday as tensions between Russia and Ukraine appeared to escalate.
Mon, 14 Feb 2022, 13:36 pm UTC
After crashes below $34,000 last month, Bitcoin and the entire crypto market showed signs of recovery last week with BTC trading above 45,000 on February 11. However, the crypto was not able to maintain its upward momentum as potential geopolitical risks from Russia and Ukraine. as well as comments from a Fed official sent crypto prices down on Friday.
After climbing above $45,000, Bitcoin was sent tumbling below $43,000 on Friday as tensions between Russia and Ukraine appeared to escalate, according to Coindesk. BTC traded to as low as $41,716 on Monday, February 14, before inching back higher to $42,139 at the time of writing based on CoinMarketCap data.
Ether, the native token of the Ethereum blockchain and the second-largest crypto by market cap, suffered a similar fate. ETH, which managed to climb back above $3,200 on February 10 after falling to as low as $2,199 in January, retreated once more below $3,000 and traded at $2,857 at the time of writing.
The drop in crypto prices on Friday came after a warning was issued by President Joe Biden. He said that Russia’s military activity could intensify and warned that U.S. citizens should immediately leave Ukraine.
“American citizens should leave. … Leave now,” Biden told NBC News’ Lester Holt on Thursday night. “We’re dealing with one of the largest armies in the world. This is a very different situation, and things could go crazy quickly.”
The hawkish remarks by a Federal Reserve official might have had a hand in the decline of US stocks as well as cryptocurrencies such as Bitcoin. On Thursday, Federal Reserve Bank of St. Louis President James said he supported raising interest rates by a full percentage point by July due to the high rate of inflation.
“I’d like to see 100 basis points in the bag by July 1,” Bullard said in an interview with Bloomberg News on Thursday. “I was already more hawkish but I have pulled up dramatically what I think the committee should do.”
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