Bitcoin amid geopolitical shock: the crypto market is growing after the events in Venezuela
5 January 15:19
Bitcoin has risen to its highest level in three weeks in early Asian trading as investors react to a sharp change in the geopolitical situation around Venezuela and a general increase in risk appetite in global markets. Bloomberg writes about this, "Komersant Ukrainian" reports.
According to Bloomberg, on Monday morning, the largest cryptocurrency rose by 2.3% to $93,323, the highest since December 11. Along with bitcoin, other digital assets, including airtime, also rose.
What pushed the market up
The movement in the crypto market is taking place against the backdrop of generally positive sentiment in Asia. The region’s stock indices are updating records thanks to investors’ bets on the technology sector and the development of artificial intelligence.
At the same time, markets were also affected by the sharp escalation around Venezuela. Following reports of US actions against President Nicolas Maduro, political uncertainty has increased, a factor that traditionally spurs interest in alternative assets.
Is Bitcoin a safe haven or a risky asset?
Historically, bitcoin has often been viewed as a kind of hedge fund in times of crisis. At the same time, in calmer periods, its behavior is more similar to that of stocks and other risky instruments.
The current movement combines both logics: on the one hand, a geopolitical shock, and on the other, optimism in the stock markets, which supports risky bets.
Money is returning to funds
A separate signal of the change in sentiment was the growth of inflows into bitcoin-linked exchange-traded funds. on January 2, investors invested $471 million in 12 bitcoin ETFs in the United States, the largest daily inflow since mid-November.
Key levels for traders
Currently, market participants are focused on the $94,000 mark. In the event of a confident breakout of this level, bitcoin may receive a new impetus for growth.
Events around Venezuela have already affected other markets
Oil prices have fallen amid uncertainty about the future of the country, which has some of the largest oil reserves in the world.
Meanwhile, in Venezuela itself, Vice President Delcy Rodriguez temporarily took over the presidency, declaring her readiness to engage in a dialogue with the United States.
