- As financial markets rose, the price of cryptocurrencies followed suit.
- The bulls made a comeback, and the coin surged by 10%.
Bitcoin and Ethereum have recovered from Thursday’s plunge in the cryptocurrency market on Friday. According to statistics from coinglass.com, Bitcoin’s rapid rise has wiped away $172 million in short bets in the previous 24 hours. In the wake of Joe Biden’s reluctance to entirely exclude Russia from the global banking system, the cryptocurrency market rebounded.
Concerns about Russia’s invasion of Ukraine first sent the world’s biggest cryptocurrency down to almost $34K. The bulls made a comeback, and bitcoin surged by 10% in the previous 24 hours, bringing it exceptionally near to the $40,000 mark, with most altcoins up by double digits.
Global Financial Market Rises
To some extent, this resembles the GameStop short squeeze from last year, when rising retail and social media attention pushed the company’s heavily shorted shares up by the hundreds of dollars over a few short weeks. As much as $20 billion had been wiped off short bets in the company due to the increase.
As financial markets rose, the price of cryptocurrencies followed suit. US equities had risen more than 1% on optimism that the new round of sanctions imposed by the United States would not be as detrimental to the country’s economy as previously thought.
It’s still a safe-haven market in crypto. More than half of the market volume in the previous 24 hours was accounted for by the stablecoin Tether, with approximately $63 billion—more than Bitcoin and Ethereum combined.
Since the Russian invasion began on Thursday, donations, including those paid using cryptocurrency, have flowed into Ukraine. According to blockchain Analytics Company Elliptic, Kyiv-based Come Back Alive, a nonprofit that supports the Ukrainian army, raised $400,000 in bitcoin inside the first few hours.
