Bitcoin (BTC) rebounded from its week-long low on March 8 after a lack of progress in Russia-Ukraine talks sent markets crashing.
BTC/USD 1-hour candlestick chart (bit stamp). Source: TradingView
Commodities “trade like meme stocks”
Data from Coin-Crypto Markets Pro and Trading Display showed that BTC/USD bounced at $37,170 on Bitstamp after Wall Street opened on Monday.
The night’s progress held the support with the pair trading around $38,500 at the time of writing.
Crypto and stocks had reacted badly to the third round of negotiations to end hostilities between Russia and Ukraine, which ended in a lack of consensus.
“There are small positive subductions in improving the logistics of humanitarian corridors…Intensive consultations have continued on the basic political bloc of regulation, along with a ceasefire and security guarantees,” nevertheless negotiator Mykhailo Podolyak tweeted as part of feedback after the conversations.
However, the news wasn’t enough to offer any hope – US stocks fell during the session, the S&P 500 ended Monday with losses of 2.95%.
Commodities, meanwhile, saw spikes that were often unprecedented, such as nickel leaping more than $100,000 a ton on the London Metal Exchange.
Commodities are traded like meme stocks.
Wheat +17%, +75% YTD. pic.twitter.com/04T2h5aRmR
— Dylan LeClair (@DylanLeClair_) March 8, 2022
At the same time, the pain for Russia continued, with only investors exposed to rubles plunging into BTC saw any sort of relief. On Monday evening, BTC/RUB hit new all-time highs of just over 5 million on Binance.
BTC/USD 1 Day Candlestick Chart (Binance). Source: TradingView
Amid the chaos, and despite Bitcoin’s lackluster price reaction as a safe-haven that was paradoxically correlated with stocks, there were still voices of confidence from diehard supporters.
“The world sees trust being re-priced in real time,” said Marty Bent, founder of Bitcoin media company TFTC In summary†
“When the dust settles, bitcoin will be the greatest benefactor as the masses will realize a distributed system that cannot be controlled by a single person, government, company or coalition is the only thing they can trust.”
Meanwhile, regulatory concerns from the US also contributed to the cold feet of the market.
$40,000 becomes short-term goal
For low-time frame transactions, Bitcoin nevertheless looked quite unappealing to many, with clearly limited upside potential.
Related: 3 Reasons Bitcoin May Rising Back To $60K Despite Erasing Last Week’s Gains
For popular traders Anbessa and Crypto Ed, $40,000 remained a clear target for a bullish divergence.
#BTC LTF Intraday Update
bullish divergence playing out to 3% pic.twitter.com/Gabh2xSF5P
— AN₿ESSA (@Anbessa100) March 7, 2022
“The target could be better defined once that correction is complete, but stick with ~40k for now,” Crypto Ed added†
As Coin-Crypto reported, upcoming events in the US, particularly consumer price index (CPI) data expected on Thursday and a decision on rate hikes next week, could disrupt short-term sentiment.