- The Russia-Ukraine crisis, higher rates, and new crypto regulations in the US could be the “perfect storm” that sends Bitcoin to $30,000, said the analyst.
- Bitcoin reached a low of $36,500, but it is struggling to remain above $38k in the face of investor uncertainty.
Bitcoin fell 3% over the past 24 hours. Tuesday’s price movement saw a low of $36,500.
The bellwether crypto is down more than 11% this past week and fell heavily on Monday amid a confluence of macro factors analysts say could combine for a ‘perfect storm’ of negative price drivers.
The cryptocurrency is currently trading at $37k, but it remains weak. According to an analyst, BTC prices could fall below $30,000.
This could be the “perfect storm”.
Russian President Vladimir Putin signed Monday a decree recognizing the self-proclaimed republics Donetsk & Luhansk independent. He followed that up by a directive to send troops into the Ukrainian areas, which led to sanctions from both the United States and the European Union. The UN Security Council also met and condemned Putin’s move.
Bitcoin price reacted alongside stocks to hit multi-week low, with further rot likely as US markets opened after Monday’s President Day holiday.
Investors continue to feel the pinch as the US Federal Reserve plans to increase its interest rates.
The crypto market is anticipating a shift in regulation in the US as a result of an impending executive Order from the White House.
“The Ukraine crisis, compounded by rising interest rates and crypto regulations in the US, may create a perfect storm driving the bitcoin to test the $30,000 level,” CloudTree Ventures’ Winston Ma told the Street.
According to him, Bitcoin continues to act “more like high growth tech assets,” and the risk-off sentiment may greatly influence crypto markets.
KALEO, crypto analyst says that there could be a bullish move to $40,000 and higher. The next level of support could be at $32,000, but there is still weakness.
“BTC found support at the base of the Feb 3rd lows where we saw the bullish leg up. Macro structure remains weak, and I would not be confident in this bounce until it breaks above $40K. Still expecting this to slowly bleed out until a breakdown to ~$32K,” he said.
Bitcoin was trading at $37,785 as of the writing.