Bitcoin (BTC) and altcoins fell further on February 17 after the situation in Ukraine worsened and Russia expelled Bart Gorman, the deputy head of the US diplomatic mission, from the country after the President Biden reiterated that the threat of a Russian invasion of Ukraine was “very high.”
Data from Cointelegraph Markets Pro and TradingView shows that the resurgence of sell-side pressure in the afternoon sent the price of Bitcoin to a daily low of $40,081 as the bulls frantically regroup and try to prevent a drop below $40,000.
According to analysts, the bullish case for an upward move continues to diminish as the factors weighing on the crypto market increase.
Real rates and inflation are the main issues
The effect of the Ukraine-Russia situation was discussed by David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha, who noted that the situation is “definitely weighing on risk assets, up like Feb. , down like today”.
With the Ukraine-Russia saga currently making headlines and causing widespread weakness in global markets, Lifchitz suggested the situation “looks like a distraction from the problem of real rates and inflation.”
According to Lifchitz, this current conflict may only last a few months when “the inflation/rate question is a multi-year problem that can hit much more, on a larger scale and for longer.”
“Bitcoin is just back in its $30,000-$50,000 range at the moment as we remain in a traders market. So unless there is a significant break below $33,000 or above $48,000, the swing trading will continue and the altcoins will follow suit, with a bit more amplitude.
Related: Bitcoin traders say $40,000 is the ‘line in the sand’ after BTC and stocks sell off
Bitcoin remains a major asset
Despite recent weakness, market analyst and pseudonymous Twitter trader “IncomeSharks” offered the following words of comfort to help add some perspective to BTC’s long-term outlook.
With everything that has happened over the years, how can you not be optimistic knowing #Bitcoins still worth over $40,000? It continues to be worth more almost every year since its inception. This is a stronger asset that people give credit for.
— IncomeSharks (@IncomeSharks) February 17, 2022
The overall cryptocurrency market capitalization now stands at $1.85 trillion, and Bitcoin’s dominance rate is 41.7%.
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