Bitcoin Climbs to $45K Early Wednesday Before Quickly Retreating

The crypto briefly touched a three-week high amid continued escalation in Ukraine, and as Fed Chair Jerome Powell promised a rate hike later this month.

AccessTimeIconMar 2, 2022 at 4:31 p.m. UTC
Updated Mar 2, 2022 at 5:11 p.m. UTC

Brian covers bitcoin on the markets team

In highly volatile action this morning, bitcoin (BTC) climbed from $43,500 to above $45,000 in the space of a few minutes but gave back those gains even faster.

  • “BTC showed resilience despite the decline in other risky assets and [strength in] the dollar,” said Alex Kuptsikevich, senior financial analyst at FxPro. “World markets were declining following the banking sector, which felt the severity of Russia's partial disconnection from Swift (by 80%).”
  • This morning’s run came following President Joe Biden’s State of the Union address last night where he talked tough on Russia, and as Fed Chair Powell sat down for the first of two days of testimony in front of Congress. In his prepared remarks, the Fed chair reiterated his expectation that – despite the uncertainties unleashed by the Ukraine war – the U.S. central bank will hike the Federal Funds rate when it meets later this month.
  • In other central bank action today, the Bank of Canada – as expected – lifted its benchmark interest rate for the first time since 2018.
  • Trudging about in the $43,500 area at 13:45 UTC, bitcoin quickly jumped to above $45,000 for the first time since February 10, but if you blinked you missed it. Within seconds, the price had fallen back to $44,100. At the time of writing, it’s changing hands at $44,300.
  • Checking traditional markets, the Dow, S&P 500 and Nasdaq are up by more than 1%. The big action, though, has been in oil, where West Texas Intermediate (WTI) crude climbed as high as $112 per barrel earlier this morning but has since retreated to $106.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Brian covers bitcoin on the markets team

CoinDesk - Unknown

Brian covers bitcoin on the markets team

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC