The bitcoin rally evaporates by Friday afternoon as prices tumble below $40K

Earlier this week, the crypto market diverged from stocks for a short period of time.

bitcoin price

Bitcoin (BTC), the most valuable cryptocurrency by market capitalization, was changing hands at $39,300 at press time, falling below $40,000 for the first time since Monday as equities continued to fall due to the Ukraine conflict.
Bitcoin has made quite the round trip this week, with bulls buoyed by a spectacular run higher from noon Monday that sent the price from $38,000 to almost $45,000 early Wednesday. The divergence from struggling markets, however, did not stay long, and bitcoin’s fast retreat has gained pace this afternoon.

When it comes to equities, the Nasdaq is down another 2% on Friday, while the S&P 500 is down 1%. The situation in Europe is even worse, with Germany’s DAX down 4.4 percent, France’s CAC 40 down 5%, and Italy’s stock exchange down more than 6%.

Not to be overlooked is the United States Federal Reserve, whose Chair Jerome Powell promised a 25 basis point rate rise later this month while being concerned about the economic impact of the Russia-Ukraine conflict. The Federal Reserve of the United States didn’t need any more ammo for tightening monetary policy, but it received some nonetheless in Friday’s nonfarm payrolls data. According to the figures, 678,000 jobs were added in February, much beyond the 400,000 expected.

Increasing market pressures According to a Bloomberg article published on Friday, the Biden administration is considering prohibiting Russian oil imports. This has contributed to the large oil rise, with WTI crude up 7.1 percent to $115.35 a barrel.

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