In a major turnaround, BTC spiked by approximately 18% within a single day as crypto investors shrugged off recent Russia Ukraine war concerns. On 1 March 2022, Bitcoin reached the price level of $44,500 for the first time in 2 weeks.
BTC has added more than $100 billion to its market cap within the last 24 hours. The bullish market sentiment was seen across other digital currencies as well. Ethereum, the second most dominant crypto asset, climbed above $3,000 on Tuesday, which is its highest level since 17 February.
Despite the reason that the recent war-related issues sparked a massive plunge in the prices of digital assets, the crypto recovery was sooner than expected. While the equity market is still down across the world, the crypto market saw decent gains even in uncertain geopolitical conditions.
“In percentage terms, Bitcoin recorded the largest daily candle in more than a year, gaining more than 18% day-over-day at the highest point of the rally. While it seems that the second leg of the move was at least partially fueled by a small short-squeeze, overall, the rally was driven by a huge spike in demand,” Mikkel Morch, the Executive Director at crypto fund ARK36, said.
“In view of that, yesterday’s rally may have a deeper significance for the Bitcoin use case. The biggest crypto asset is now looking at a potential decoupling from risk assets, and it is doing so at a time of unprecedented uncertainty. Cash used to be king in times of crisis but now rising inflation levels and broader macroeconomic woes make holding large amounts of cash risk in and of itself,” Morch added.
BTC and ETH
Bitcoin and Ethereum remained in tandem during the recent crypto market recovery. BTC and ETH have jumped 19% and 17%, respectively in the past 7 days.
