Bitcoin (BTC) and altcoins fell further on February 17 following the situation in Ukraine worsened and Russia expelled Bart Gorman from the country, deputy head of the United States diplomatic mission, following President Biden will reiterate that the threat of an invasion of Ukraine by Russia was “very high”.
Data of Cointelegraph Markets Pro and TradingView show that Evening resurgence of selling pressure dropped Bitcoin price to a daily low of $40,081, as the bulls frantically regroup and try to avoid a drop below $40,000.
According to analysts, the bullish arguments for a move higher continue to diminish as factors weighing on the crypto market increase.
Real interest rates and inflation are the main problems
The effect of the situation between Ukraine and Russia was touched by David Lifechitz, managing partner and chief investment officer of ExoAlpha, who noted that the situation “is definitely weighing on risk assets, up like Feb 15, down like today.”
While the Ukraine-Russia saga currently dominates the headlines and causes widespread weakness in global markets, Lifchitz suggested that the situation “seems like a distraction from the real interest rate/inflation issue.”
According to Lifchitz, this current conflict may last only a few months, while “The issue of inflation and interest rates is a multi-year issue that can affect much more, on a larger scale, and for longer.”
Lifchitz said:
“Bitcoin is going back to its $30,000 to $50,000 range for now as we are still in a traders market. So unless there is a significant break below $33,000 or above $48,000, the swing trading will continue and altcoins will follow the movement, only with more amplitude.”
Bitcoin is still a solid asset
Despite recent weakness, Twitter pseudonymous market analyst and trader ‘IncomeSharks’ offered the following words of comfort to help add some perspective to the long-term outlook for BTC.
With everything that has happened over the years how can you not be bullish knowing #Bitcoin is still worth over $40,000? It continues to be worth more almost every single year since it’s inception. This is a stronger asset than people give credit.
— IncomeSharks (@IncomeSharks) February 17, 2022
With everything that has happened over the years, how can you not be bullish knowing that Bitcoin is still worth over $40,000? It continues to be worth more almost every year since its inception. This is a stronger asset than people give it credit for.
The total cryptocurrency market capitalization currently stands at $1.85 trillion and the dominance rate of Bitcoin is 41.7%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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