Bitcoin and the wider cryptomarkt finally show a powerful recovery, a welcome change after a period of volatility. Two important developments contributed to this optimism: Canada suspended planned electricity rates for the US and Ukraine and Russia reached a 30-day ceasefire after the US guided negotiations in Saudi Arabia.
Trade policy and geopolitical relaxation bring optimism
The global markets responded positively to developments in trade policy. Originally, the announcement of new input rates on Canadian Staal and Aluminum caused Unrest by President Donald Trump. Later Doug Ford, Prime Minister of Ontario, decided to suspend a planned surcharge of 25% on the export of electricity to the US. According to Ford, this decision came from a “productive conversation” with the American Minister of Trade, Howard Lutnick.
At the same time there was hopeful news on geopolitics. Yesterday, Ukraine accepted a 30-day ceasefire presented by the US. The US is planning to submit this proposal to Russian President Vladimir Putin soon. Skepticism sounds from Moscow: a Russian senator stated that every deal must be closed under the conditions of Moscow and not under that of Washington. Whether Russia agrees therefore remains uncertain.
Strong recovery in crypto and stock markets
The decreasing trade stresses and the prospect of diplomatic progress in the Ukraine crisis caused a positive boost on the financial markets. The total market capitalization of the cryptomarkt rose by 4.5% in the last 24 hours to around $ 2.7 trillion. Bitcoin recovered convincingly and acts above $ 80,000, while Ethereum remains below $ 2,000. The worldwide trade volume in Crypto also increased sharply.
Investors react relieved now that the uncertainty about new American rates has been partly removed and a diplomatic breakthrough is possibly in the making. This ensures a more favorable market sentiment, especially risky assets such as Bitcoin, which often benefits from geopolitical and economic developments. Nevertheless, the situation remains fragile, and further geopolitical or macro-economic fluctuations can again ensure volatility.
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Source: https://newsbit.nl/bitcoin-stijgt-terwijl-vs-rusland-en-oekraine-stappen-zetten-richting-wapenstilstand/
