Even as markets fell owing to fears about rising oil costs, Bitcoin (BTC) climbed approaching the critical psychological level of $40,000, three days after losing ground.
The most valuable cryptocurrency by market capitalization was changing hands slightly above $39,000 at press time, after dropping below $38,000 earlier in the day.
Brent crude soared to a 14-year high of $139 per barrel on Monday, not far from the record $147 set in 2008.
Bitcoin Unable To Break Price Barrier
Bitcoin failed to break above a major price barrier level early Wednesday, despite mixed trading in traditional markets and indications of the next round of Ukraine-Russia peace negotiations.
According to the charting site TradingView, the largest cryptocurrency by market value achieved daily highs at the falling 100-day moving average (MA) obstacle at $45,000 before retreating to $44,000. The cryptocurrency was still up 28% from its one-month lows on Thursday.
As other cryptocurrencies tracked a more significant rebound rise alongside bitcoin’s comeback, the overall crypto market value surpassed $2 trillion. Terra’s LUNA token, a programmable blockchain, hit a two-month high of $96, bringing the week-on-week increase to 92 percent.
As inflation expectations soared and traditional markets priced out the potential of severe monetary tightening by central banks, the crypto rebound appeared ready to continue rising demand from Russia and Ukraine. While S&P 500 stock index futures gained, European markets fell, and the euro-US dollar exchange rate fell to its lowest level since March 2020. The European economy was set to take a heavier impact as a result of the Ukraine-Russia conflict, and the West’s harsh sanctions on Moscow, according to markets.
Gold has taken a bullish pause, while oil, industrial metals, and grains have re-entered the market, implying more inflation in the months ahead. Despite this, money markets continued to reduce bets on the Federal Reserve and the European Central Bank tightening monetary policy.