Bitcoin Reacts to Invasion of Russia and Ukraine

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Bitcoin continues to act like a high-risk beta asset similar to most of the overvalued tech sector. With the spread of Russia’s announcement of military intervention in the financial markets, US stock markets reached a decline of -3% in the overnight session, with Bitcoin also dropped to $34,300, before bottoming out and then rebounding strongly to $40K in a major short squeeze..

Bitcoin price is weighted by perpetual swap funding rates

The short squeeze on Bitcoin is boosting the price while risk assets are trading as if maximum fear and uncertainty were priced in after the war was declared. — Bitcoin price drops from all-time highs

At the time of writing, bitcoin is down 43% from its November highs, and 12% from its lows late last night. At the close of the day, the Nasdaq closed 3.4% hanging in the green in the daily session, as risky assets traded as if maximum fear and uncertainty were priced in shortly after the declarations of war. Gold initially jumped to a one-year high, touching $1,744 an ounce before dropping sharply, in a reversal pattern from the US stock markets and bitcoin.