Bitcoin remains below $40,000 as demand for risk assets falls

Cryptos have been under pressure since the beginning of the year, hit by a bout of risk-aversion. The bulls have attempted several times to reverse the downtrend, with little success so far. The recent volatility in stock markets, and especially the fall of tech stocks has been affecting crypto markets, which seem to have developed a strong dependency on stock market trends. 

Mounting geopolitical tensions have been driving the price of cryptos down, as investors shy away from risk assets. The recent developments in the crisis between Russia and Ukraine have put even more pressure on cryptocurrencies. On Monday, Russian President Vladimir Putin signed a decree recognising the independence of the two separatist regions Donetsk and Luhansk in eastern Ukraine, and ordered Russian troops in these regions, effectively invading Ukraine. Crypto markets are on the decline following these developments, as demand for risk-assets falls and investors turn towards safe-haven assets.

Bitcoin and Ethereum prices continued to fall on Tuesday, as a risk-aversion sentiment continues to prevail over the uncertainty of the situation in Ukraine. Stock markets and especially European and Russian stock markets also dipped on Tuesday, showcasing once more the growing affinity between stock markets and crypto markets. 

Bitcoin traded sideways on Tuesday, around the $37,000 level. If Bitcoin price declines, it may find support at $36,000 and $33,000, while resistance may be found at $40,000.  

Ethereum price plummeted to the $2,500 level, trading below the $2,640 support. In case ETH price continues decreasing, further support may be found around $2,300. In case its price goes up, it may find resistance at $3,000 and further up at $3,400. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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