The tensions between Ukraine and Russia have left ripples across industries worldwide. Now, as we move possibly one step closer to de-escalation, Russia said that it is pulling back some of its troops near the Ukrainian border back to their bases. This news, even though coming with its own levels of uncertainty, seems to have provide enough impetus to investors and has in turn had a positive impact on cryptocurrencies as well.
Cryptocurrencies have been quite volatile in the market in recent times as their prices have been fluctuating.
This recent development, however, is good news for the crypto world as Bitcoin, the most popular cryptocurrency, saw its price cross the $44,000 mark for the first time since the end of last week.
Its price rose from a low of $41,928.19 yesterday to $44,135 currently, however, it continues to trade at a much lesser amount than the record $69000 it had clocked last year in November. Overall, it is down by about 6% this year so far, and about 35% from its peak. More short-term increases in price are expected.
If things go well, it may breach the $45,000 mark soon.
Bitcoin is not the only cryptocurrency to make a recovery. Ethereum, another popular cryptocurrency, moved on from an earlier low of $2,867.31. It rose by almost 7% and exceeded the $3000 mark. It hit an intraday high of $3,115.69 today and is currently trading at $3118.59. DeFi favorite Aave rose by around 7%, while Dogecoin rose to $0.15 (a rise of 2.79%) as well. Polygon’s price rose by 9.63% at $1.79.
According to Edul Patel, CEO and co-founder, Mudrex, the recent volatility might be due to a broader market selloff. “The fear over a hawkish Federal Reserve is why the market is juggling between high and lows. On the other side, the tensions in Ukraine could also spark general market moves in the coming weeks.”
