Bitcoin price fell from intraday highs near $39,500, breaching support at $38,000 and hugging the key demand area near $37,500. In the afternoon, BTC-USD saw fresh buying, rising above $38k to again come close to the earlier daily peak.
The momentum however faded amid news out of Russia. It was the revelation that President Vladimir Putin was about to recognize two separatist regions of Ukraine as independent.
President #Putin informed President @EmmanuelMacron and Federal Chancellor @OlafScholz of his intention to sign the decree to recognise #Donetsk and #Lugansk People’s Republics. pic.twitter.com/Xi4JfhLXgr
— Russian Embassy, UK (@RussianEmbassy) February 21, 2022
In a televised address, Putin said that Ukraine was part of communist Russia. He called it “madness” to have let the Soviet Union fall apart. And according to him, Russia holds the right to protect itself and its territory, with retaliatory measures if that’s what they have to do.
Putin basically told the world that there is no such thing called as Ukraine. So seizing it doesn’t violate the international law.
Because it doesn’t exist as a state
— Ragıp Soylu (@ragipsoylu) February 21, 2022
“Simply for our existence… we will never surrender our country,” Putin added.
With the move seen as a declaration of war, broader market reactions saw BTC prices fall again to lows of $37,700.
But Putin then ended his address without a word on the expected invasion of Ukraine. Even then, the geopolitical situation remains fluid and heavily weighing on investor sentiment.
Bitcoin price is back above $38k, currently hovering near the $38,200 level. A look at the broader markets shows investor jitters are strong, with US stocks indices all down at close on Monday.