The U.S. had expressed concern that Russia was planning to invade Ukraine in a matter of days — with more than 100,000 troops building up around the country's borders.
Bitcoin rallied above $44,000 on Tuesday — accelerating by 4.24% in 24 hours — amid hopes of a breakthrough in the Ukraine crisis.
The U.S. had expressed concern that Russia was planning to invade Ukraine in a matter of days — with more than 100,000 troops building up around the country's borders.
But Moscow now says that some of these soldiers are withdrawing and returning to their bases after completing military drills.
The news has been met with cautious optimism, with one NATO official warning they are yet to see evidence of de-escalation — and Ukraine's foreign ministry waiting for meaningful evidence of a withdrawal.
The geopolitical tensions have weighed heavily on markets around the world — with dire warnings from Washington and London prompting Wall Street to fall on Monday.
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What's Next?
A prolonged winning streak for Bitcoin ended last Thursday, when prices quickly fell away from highs of $45,661.17 — their highest level in more than a month.
Bulls may now face a challenge as they attempt to push BTC beyond this level.
Even if Ukraine tensions subside, the prospect of interest rate rises in the U.S. — potentially as early as next month — also have the chance to cast a long shadow over the markets.
All of this comes as the Federal Reserve attempts to bring inflation back under control.
The U.S. Consumer Price Index hit 7.5% in January — the fastest rate for 40 years — inflicting pain on American households, who have now seen costs rise by an estimated $250 a month.
But there are glimmers of hope that inflation may begin to cool in the coming months, offering some reprieve to consumers who have seen their spending power erode.
