There has not been such a correlation between the price of BTC and other cryptocurrencies like ETH since 2019. The market has adapted to the war between Russia and Ukraine, and small investors have increased their demand for BTC.
The price of Bitcoin (BTC) has recently managed to stabilize at the USD 40,000 level. It has exceeded that goal for three days and could grow further if the pressure of demand continues. The war between Russia and Ukraine no longer scares cryptocurrency investors, who have made themselves feel in the market again.
The stability of the value of BTC indicates that the conflict is a reality that does not affect its market any longer. The same happens with Ether (ETH) and other cryptocurrencies, whose searches on Google have increased. Meanwhile, people seem to have lost their interest in the words war, Russia, and Ukraine, compared to previous weeks.
There is a tense calm among the investors that increase the demand for Bitcoin and drive its price higher. However, the buyers causing the rise are not the usual billionaires known as the whales.
Curiously, the people who have pushed the price of Bitcoin up are small and new investors. According to analyst Will Clemente, entities with a low statistical history of BTC spending continue to absorb the supply.
The Cryptocurrency Market Is at All-Time Correlation Highs
Digital asset researcher Arcane Research recently reported that the correlations in the cryptocurrency market are approaching all-time highs. That is evident in the similar steady rise that Bitcoin, Ethereum, and other cryptocurrencies have seen in the last few months.
Over the last three months, the cryptocurrency market has been approaching correlation highs seen in the 2018 and 2019 bearish moves. However, they are now moving to the upside, drawing a picture of a general risk-off sentiment in the market.
Renowned analyst Willy Woo warned that the market still shows the first signs of a sea change. He stated that there is now confirmation that demand has returned, and long-term futures markets signal a reversal from selling to buying.
Woo argues that data indicates a context of recovery in demand for the cryptocurrency created by Satoshi Nakamoto. He thinks that the price of Bitcoin will continue making limited downward movements in the coming days.
Similarly, he clarifies that there might be a bullish breakout within the next two weeks if demand and lower volatility continue. In other words, the bearish market will end, and the price of Bitcoin will rise. There will be a confirmation of that with the data presented in the coming days.
BTC is trading at around USD 41,910 and has accumulated a 2.6% gain in the last 24 hours. Its daily trading volume is above USD 29.480 billion, and its market capitalization is about USD 764.80 billion, according to CoinGecko.
Bitcoin is an increasingly relevant cryptocurrency, which has led investors to become interested in its price action. The above analysis allows understanding how events like the conflict between Russia and Ukraine affect its value. Besides, it shows that investors have overcome the fear of the war and have made themselves feel in the market once more.
By Alexander Salazar
