Today, February 18, the price of Bitcoin has fallen below $41,000, dragging with it the entire crypto market, whose capitalization has fallen back below $2 trillion, according to data from CoinMarketCap. As of 10:04 CET time, the crypto is trading at $40,905.29 (-6.04%).
Edward Moya, senior analyst at broker OANDA, in a conversation with CoinDesk, has cited "short-term geopolitical risks and potential overly aggressive tightening" by the Federal Reserve as the reasons behind the drop.
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ExoAlpha Managing Partner David Lifshitz has also discussed the impact of the geopolitical factor on risk assets. According to him, tensions between Russia and Ukraine are the main topic in the news, causing "weakness in global markets."
He has suggested the situation "looks like a distraction from the real rates/inflation issue." According to Lifshitz, Bitcoin is retreating to the $30,000 to $50,000 range. He has added:
"Unless there's a significant break below $33,000 or above $48,000, the swing trading will continue and altcoins will follow the move, with just more amplitude."