After falling to a one-month low slightly around $34,000 early Thursday, bitcoin (BTC) surged to $39,600 on Friday before settling back to its current level of $38,700.
“Risk markets have surprisingly accepted the [Russian invasion of Ukraine] news in stride,” said Lux Thiagarajah, BCB Group’s head of trading. “While BTC and [altcoins] have risen, they have yet to regain their pre-invasion levels.”
Thiagarajah believes that the refusal of Western countries to send troops into Ukraine is encouraging for bitcoin, but he warns that there are “still too many unknowns to say if we haven’t reached the bottom yet.”
According to Oanda’s Edward Moya, the next focus point for bitcoin will be Federal Reserve Chair Jerome Powell’s semi-annual hearing before House and Senate committees next week. So far, there has been no indication from Fed speakers this week that the Ukraine incursion has pulled the US central bank away from its expected March rate rise of at least 25 basis points.
Traditional markets have also continued to rise since the invasion, with the Dow Jones Industrial Average up 2%, the S&P 500 up 1.7 percent, and the Nasdaq up 1%.