Bitcoin (BTC) and other cryptocurrencies gained on Friday after Russia promised to meet with Ukrainian authorities to discuss.
“Vladimir Putin is willing to send a Russian delegation to Minsk,” Kremlin spokesperson Dmitry Peskov said on Friday. Even nevertheless, the situation remained volatile, especially as Russian forces upped their bombardment on Ukraine’s capital in recent days. Later, the Russian president made statements implying that he was not serious about participating in the negotiations.
Meanwhile, global markets were in turmoil as investors attempted to make sense of geopolitical developments. The S&P 500 stock index gained more than 2%, while Russia’s currency edged upward, albeit near its worst level on record.
On Friday, bitcoin underperformed the majority of alternative cryptocurrencies (altcoins), indicating a larger appetite for risk among investors. Over the last 24 hours, BTC has been relatively flat, compared to a 5% gain in XRP and a 10% increase in Terra’s LUNA coin.
Because of the increase in volatility, some investors believe the cryptocurrency price recovery will continue. On Thursday, Bitcoin’s one-week implied volatility rose to an annualized 75 percent, outperforming the one-, three-, and six-month gauges, mirroring what happened following the May 2021 fall. Furthermore, according to CoinDesk’s Omkar Godbole, bitcoin’s inverted volatility structure frequently predicts price bottoms. The term implied volatility relates to investors’ expectations for price volatility over a given time period.
Volatility surges, on the other hand, might be fleeting, delaying a large increase in BTC’s current price.
“These surges in spot price will most likely be greeted by aggressive spot selling, limiting the topside,” QCP Capital, a Singapore-based crypto trading business, warned this week in a Telegram statement.