Bitcoin (BTC) has been showing price gains above $44,700 since February 15 before losing ground to trade at $40,683 as this article was written.
The decline in the price of BTC by more than 9% in three days also dragged the altcoins market to disappointing levels, except for stablecoins.
Two factors to consider regarding today's cryptocurrency market reaction:
Tensions in Russia-Ukraine relations
Russia kicked out the US Ambassador's Report and accused the US of ignoring the Kremlin's demands for safety.
US Defense Efforts accuse Russian troops of crossing Ukrainian borders.
Liquidity of BTC and other crypto assets is expected to increase by 10%-15% in the near future.
Even so, Ukraine has legalized BTC as the country's currency in times of crisis at the country's borders.
Inflation
The chief investment officer, who also serves as ExoAlpha's managing partner, David Lifchitz, said that tensions between the two countries had shifted the focus of the world away from the issue of inflation.
Lifchitz also claimed that this conflict would continue in just a few months but the issue of inflation would continue for several years and possibly get worse in the future.
Even so, the existing inflation actually became more severe in the aftermath of the Russia-Ukraine tensions.
Executive Order Announcement
President Joe Biden is expected to carry out the executive order next week.
The orders involve central bank crypto and digital currency markets (CBDCs).
The pressure is that Biden will continue the legacy of former presidents: Donald Trump and Barack Obama
As of writing, BTC is now in the $30,000 and $50,000 price zones, trading at $40,672 with over 7% depreciation in 24 hours.
If it is true that the asset liquidation will continue and cause a price correction, it is not impossible that BTC will shrink to the level of $33,000. But BTC will hit $48,000 again if things settle down again.
