Bitcoin Resilient as Commodity Prices Inflate, Dollar Strength May Hurt

Bitcoin trades were dependable arsenic commodity prices rallied connected Monday, hinting astatine higher ostentation ahead. However, the resilience to the escalating Ukraine-Russia situation whitethorn beryllium fleeting arsenic request for the U.S. dollar, the planetary reserve currency and 1 of the astir liquid plus globally, is rising.

• At 08:23 UTC, the cryptocurrency was changing hands adjacent $38,350, representing a 1.7% summation connected the day. Prices fell implicit 3% connected Sunday, providing antagonistic cues to accepted markets.

• Oil is trading 4% higher connected some sides of the Atlantic, extending its caller exponential rally. Russia and Ukraine-linked cultivation commodities similar wheat and maize are up 4% and 3%, respectively, according to information from investing.com.

• "The scope of near-term terms outcomes for commodities has go extreme, fixed the interest of further subject escalation, vigor sanctions oregon imaginable for a cease-fire," Goldman Sachs wrote successful a enactment to clients connected Sunday, according to Reuters.

• The Russian ruble plunged 40% during aboriginal Russian trading hours and deed a grounds debased of 118 per U.S. dollar arsenic the Western countries stepped up punitive sanctions connected Moscow, intending to isolate the state from the planetary fiscal system.

• The Bank of Russia raised rates from 9.5% to 20% and ordered companies to merchantability 80% of their overseas currency gross to antagonistic ruble depreciation risks and higher inflation, according to Reuters.

• Prospects of higher terms pressures and fiat currency clang person strengthened the lawsuit for holding assets with a store-of-value appeal, specified arsenic bitcoin.

• The sustainability of bitcoin's gains is nether question, arsenic the escalating Russia-Ukraine situation has led to accent successful the dollar backing markets.

• The spread betwixt the one-month London Interbank Offered Rate (LIBOR) and Fed rates contracts oregon the alleged FRA/OIS spread, has widened the astir since March 2020, according to Bloomberg.

• The dispersed measures however costly oregon inexpensive it is for banks to get liquidity (dollars) from different banks. A widening dispersed indicates recognition crunch, the likes of which were past seen during the coronavirus-induced clang of March 2020. In specified situations, investors usually similar to clasp cash, chiefly the U.S. dollar.

• The dollar index, which tracks the greenback's worth against majors, is trading astatine 97.15 astatine property time, up 0.66% connected the day.