Relevance up to 00:00 2022-03-09 UTC–5
Bitcoin and ether revived a little after the pressure that was observed on crypto assets over the weekend. Corrections are inevitable, and you should not treat them as something out of the ordinary. Moreover, we are talking about the volatility observed in the cryptocurrency market. Yes, bitcoin, like the US stock market, reacts to any geopolitical events, but as it has become clear recently, the correlation is weakening.
More recently, we talked about the fact that Russia can use cryptocurrencies to partially circumvent sanctions from the EU and the United States. Of course, there is some pessimism in this approach, because the Russian authorities two weeks ago were opponents of this kind of digital assets, preparing to ban their turnover, or partially restrict them almost at the legislative level.
Today, such an approach to digital assets, even if not from the official Moscow side, but the business side does not seem to be such a “way out”. This conclusion can be made after US Treasury Secretary Janet Yellen said that the Ministry of Finance is monitoring Russia’s attempts to evade sanctions with the help of cryptocurrencies. Four US senators have written to Yellen and expressed concern that Russia is using cryptocurrency as a channel to circumvent sanctions.
US Treasury Secretary Janet Yellen said that the Ministry of Finance is monitoring Russia’s attempts to evade sanctions using cryptocurrencies. “We will continue to monitor how sanctions work and evaluate any attempts by Russia to avoid them,” Yellen said. The senators also expressed concern that Russia may use digital assets and alternative payment platforms as a means to conceal international transactions to finance military operations on the territory of Ukraine.” I often hear about cryptocurrencies, and this is a direction that needs to be strictly controlled,” the US Treasury Secretary said. Although many members of the cryptocurrency community are subject to anti-money laundering rules, as well as sanctions, it is necessary to act ahead of the curve, Yellen believes.
Let me remind you that several major exchanges for cryptocurrency trading have already stated that they are working with the government to comply with sanctions requirements, including Coinbase, Binance, and Kraken. Despite this, these cryptocurrency companies rejected the request of the Deputy Prime Minister of Ukraine to block all Russian users. We are talking about blocking only those persons who are subject to sanctions.
As I noted above, even though some cryptocurrency exchanges have blocked the accounts of Russian and Belarusian users, and several companies have gone so far as to transfer customer funds from Russia to help the Ukrainian military, the demand for cryptocurrency is only increasing.
The growth of bitcoin will continue, as the US and the EU do not stop and continue to impose new sanctions against Russia. Washington has targeted the central bank of Russia, effectively banning Americans from doing any business with it, also freezing its assets in the United States. This is in addition to sanctions directed against the oligarchs and Russia’s sovereign debt, as well as in the hope of cutting the country off from the global financial system.
As for the technical picture of bitcoin
Bitcoin has once again played back the failure that was observed over the weekend and has now rushed to the $ 41,033 mark. Active purchases began yesterday in the area of $ 38,000, where a trace of major players is visible. Now everything is tied to the levels of the greed of investors and their intimidation of what is happening on the world stage, but the negotiations between Russia and Ukraine are good for everyone. In the event of another decline in the trading instrument, only a breakdown of $ 38,000 will fail the trading instrument below the minimum of $ 34,300, and there it is at hand to $ 32,900. It will be possible to talk about stopping the bear market in the current conditions only after BTC returns above $ 41,033. Only then can we expect to recover to the area of $ 45,300 and $ 48,500. The fact that bitcoin feels pretty great in the current conditions proves the interest in it, keeping its bullish potential in the long run.
As for the technical picture of the ether
The focus remains on the resistance of $ 2,756. Only consolidation above will return the prospect of an upward correction to the market. In the meantime, the probability of a large bearish trend will be valid. Only the breakdown of $ 2,756 will serve as a new impulse to reach the level of $ 2,942 and $ 3,190. If the pressure on ETH persists, purchases in the area of large support of $ 2,520 are not excluded. A break in this range will be a reason to go to the lows: $ 2,312 and $ 2,149, where the major players will again begin to actively act.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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