Bitcoin Higher as US Ban on Russian Oil Imports Roils Markets
Crypto traders are still evaluating the potential impact of soaring oil prices on bitcoin's price – if any.
Mar 8, 2022 at 7:52 p.m. UTCUpdated May 11, 2023 at 4:47 p.m. UTC
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Bitcoin (BTC) was higher Tuesday as traditional markets including stocks and commodities swung wildly, with investors reacting to U.S. President Joe Biden's announced plan to join the U.K. in banning Russian imports of oil.
The largest cryptocurrency by market capitalization was changing hands at $38,932 at press time, up 1.7% over the past 24 hours. Bitcoin ticked up slightly from early morning trading, which saw the cryptocurrency find support at the $38,400 price point.
- Bitcoin traders were monitoring the surge in oil prices along with the latest developments in Russia's war on Ukraine. Experts posit that the U.S. could turn to Venezuela or Saudi Arabia to alleviate soaring gasoline prices in light of the Russian oil ban.
- “BTC managed to turn against the tide, winning back the initial failure, despite the decline in stock indices,” said Alex Kuptsikevich, analyst at FxPro based in the UK.
- Traditional markets posted modest gains Tuesday with the S&P 500 index notching a 0.44% gain. The Nasdaq Composite also trended upward, gaining 1%.
- Crude oil prices rose 5% Tuesday.
- Bitcoin analysts say that while the largest cryptocurrency by market value is often seen as a hedge against higher consumer prices, it's also often viewed by many investors as a volatile and risky asset with a price that might fall if the U.S. Federal Reserve moves aggressively to tackle inflation.
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Brian covers bitcoin on the markets team