Bitcoin Dominates Altcoins During War-torn February

Bitcoin has surged in the past 24 hours as the situation in Ukraine turns worst. The Russian Federation continues its attack on Ukrainian territory. As the conflict continues, other macro factors playing against Bitcoin could be softened, at least for the short term.

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At the time of writing, Bitcoin (BTC) is trading at $43,807 with a gain of 7.8% in the last 24 hours and a gain of 20.5% in the last seven days.

BTC is rising on the 4-hour chart. Source: BTCUSD trading summary

With the exception of Avalanche (AVAX) and Terra (LUNA), Bitcoin has shown significant strength compared to the rest of the crypto market. This may have to do with BTC’s story and its ability to act as a safe haven in times of turmoil.

Of the top 10 cryptocurrencies by market capitalization, only Solana (SOL) at the time of writing is near BTC’s price performance over the past week with a gain of 18.5%. Closely followed by Ethereum (ETH) with a gain of 14.5%, Binance Coin (BNB) with a similar rally, Cardano (ADA) with a gain of 12.6% and XRP with a gain of 10.8% .

As mentioned, only AVAX and LUNA have outperformed Bitcoin. These cryptocurrencies posted gains of 26.4% and 85% respectively over the same period.

According to a recent report from Arcane Research, Bitcoin was the best-performing asset in February after global markets underwent a severe correction. Driven by the uncertainty surrounding Ukraine and a potential rate hike in March, the price of BTC and other risky assets suffered.

Arcane Research is posting a monthly gain of 12% for the price of BTC at the end of February. This made it the first month since October last year with a positive price development.

Source: Arcane Research

As can be seen from the chart, BTC’s monthly performance outperformed Arcane Research’s small, medium and large index. The latter was able to record a profit of 9% in the same period.

Bitcoin season on the market? Why Altcoins Could Lag

Due to recent macro developments, Bitcoin has increased its dominance in the crypto market. Up nearly 4% since January, this statistic stands at 43% and could yield more gains if the situation in Ukraine expands further.

Only Ethereum (ETH) comes close to a comparable percentage in terms of market dominance at 18.23%. Followed by Binance Coin (3.54%), XRP (1.93%), LUNA (1.75%), Bitcoin remains king of the crypto market.

The armed conflict in Europe could benefit risk assets if the US Federal Reserve (FED) decides to postpone its plans to raise interest rates. So more ground for a relief for BTC and other cryptocurrencies.

A decision on interest rates should be announced in the coming weeks, so far investors seem optimistic. On the other hand, the price of BTC has some hurdles in the near term.

Related literature | Bitcoin Spotlight As Safe Harbor Asset As BTC Crosses $43K

Data from Material Indicators registers significant resistance at $45,000, $46,000 and $48,000. In all, there are over $30 million in demand orders at those levels. This suggests that the price of BTC may struggle to break above those levels for now.

BTC’s price (blue line on the chart) with significant resistance (asking orders in yellow above price). Source: Material Indicators

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