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According to a recent report by Arcane Research, Bitcoin was the best performing asset in February after the global markets faced a severe correction. Driven by the uncertainty around Ukraine and a possible rate hike in March, the price of BTC and other risk assets suffered.
Arcane Research records a 12% monthly gain for BTC’s price at the end of February. Thus, becoming the first month since October last year with positive price performance. As seen in the chart, BTC’s monthly performance topped Arcane Research’s small, mid, and large index. The latter was able to record a 9% gain over the same period.Bitcoin Season Upon The Market? Why Altcoins Could Lag
As a consequence of recent macro developments, Bitcoin has increased its dominance over the crypto market. Up almost 4% since January, this metric stands at 43% and could see more gains if the situation in Ukraine extends. Only Ethereum (ETH) comes close to a similar percentage in terms of market dominance with 18.23%. Followed by Binance Coin (3.54%), XRP (1.93%), LUNA (1.75%), Bitcoin remains king in the crypto market. The armed conflict in Europe could benefit risk-on assets if the U.S. Federal Reserve (FED) decides to delay its plans to increase interest rates. Thus, giving more terrain for a relief bounce for BTC and other cryptocurrencies. A decision on interest rates should be announced in the coming weeks, so far, investors seem optimistic. On the other hand, BTC’s price has some obstacles in the short term.Related Reading | Bitcoin As Safe Haven Asset On The Spotlight As BTC Crosses $43K
Data from Material Indicators records significant resistance at $45,000, $46,000 and $48,000. In total there are over $30 million in asks orders sitting at those levels. This suggests BTC’s price could have a tough time breaking above those levels for the time being.