Bitcoin price dips below $38K as crypto sentiment nears ‘extreme fear’

Bitcoin (BTC) saw its first dive below $38,000 in over two weeks on Feb. 20 as macro triggers rattled low-volume weekend markets.

Trader on BTC: “Nothing to get excited about”

Data TradingView showed BTC/USD losing ground Sunday, following threats of fresh sanctions on Russia over its alleged plans to invade neighboring Ukraine.

After a quiet Saturday, crypto began to move downhill after comments from United Kingdom Prime Minister Boris Johnson on financial blocks of Russian firms should the situation escalate.

These would be prohibited from “trading in pounds and dollars,” the BBC reported Johnson as saying Sunday morning, alluding to support from United States President Joe Biden.

With crypto the only markets constantly open, the reaction to geopolitical fears in the region could foreshadow a greater knock-on effect next week as traditional markets open. Monday is a holiday on Wall Street.

Commenting on the situation, Mike McGlone, chief commodity strategist at Bloomberg Intelligence, additionally drew attention to the ongoing issue of inflation and its relationship to risk asset performance.

In line with previous comments, however, he suggested that ultimately, Bitcoin could profit from the sea of change in U.S. economic policy this year.

“Bitcoin indicating a rough week ahead – Inflation Unlikely to Drop Unless Risk Assets Do: Most assets are subject to the ebbing tide in 2022, on the inevitable reversion of the greatest inflation measures in four decades, but this year may mark another milestone for Bitcoin,” he argued.

Among Bitcoin traders, short timeframes were now equally lackluster, with the loss of $40,000 weighing on sentiment.

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