Bitcoin Rises with All Eyes on Ukraine, Fed’s Next Move
The price of bitcoin (BTC) has been on the rise since the beginning of the week, with traders now keeping an eye on developments in Ukraine, as well as on the US Federal Reserve’s (Fed) next move to combat high inflation.
At 10:26 UTC on Tuesday morning, BTC traded at USD 44,137, up 4.5% for the past 24 hours and 0.6% over the past 7 days. At the same time, ethereum (ETH) stood at USD 3,104, up 8% for the past 24 hours and down 1.6% for the past 7 days.
Although not directly related to bitcoin and the digital asset space, any Fed actions and developments in Ukraine are considered key to the stock market’s performance over the near to medium-term. And with stocks and bitcoin being increasingly correlated, developments in the broader economy are also expected to have an impact on the direction bitcoin takes.
Commenting on the current state of the stock market on CNBC on Monday, Mohamed El-Erian, a well-known economist and President of Queens' College, Cambridge University, said that “European markets are very worried” about an escalation of the conflict in Ukraine, where a potential Russian invasion would be the most serious outcome.
“There is a significant risk-off tone because of the impact on energy,” El-Erian said, adding that energy has “one of the biggest stagflation influences on the economy,” and that more stagflation is “the last thing we need.”
Stagflation is the term used for situations when economic stagnation – or a lack of growth – is combined with high inflation.
As of Tuesday morning, however, fears of an invasion appear to have eased somewhat, after Russia’s foreign minister Sergei Lavrov was quoted by Russian news agency TASS as saying about ongoing diplomatic talks that “I don’t think our possibilities have
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