Bitcoin has soared above $48,000 and is expected to turn positive in 2022

Bitcoin Rises as Bullish Trends Emerge Despite Ongoing Focus on Ukraine War and Fed Policy

Despite continued investor focus on the progress of the war in Ukraine and the Federal Reserve’s moves, Bitcoin prices rose on Monday amid a series of bullish trends in the cryptocurrency market.

Bitcoin extended its late Sunday rally, breaking through the key $45,000 level and erasing losses from 2022. According to Coin Metrics, Bitcoin was last trading up 6.7% at $47,914.35. Earlier in the day, Bitcoin briefly surpassed $48,000, marking the first time it has done so since December 31.

The cryptocurrency has been on an upward trajectory since Friday, gaining nearly 7%.

“Over the past six months, even with strong macroeconomic headwinds disrupting traditional markets, crypto has shown its resilience and relevance, remaining within a range-bound pattern. Now, crypto is taking center stage with its biggest chance to shine,” said Chris Kline, COO and co-founder of Bitcoin IRA, in an interview with CNBC’s Crypto World.

He added, “Crypto trading isn’t happening in a vacuum. Geopolitical uncertainty, inflation, and the risk of a severe economic recession give both retail and institutional investors reasons to adopt defensive strategies—crypto plays an essential role in that plan.”

While there was no single catalyst driving these moves, Bitcoin saw several bullish developments over the past week, indicating growing institutional demand for digital asset exposure.

Bitcoin Gains Momentum in 2022

For example, Goldman Sachs last week became the first major U.S. bank to conduct over-the-counter Bitcoin trades; Cowen announced it would soon enable institutional clients to trade spot Bitcoin. Ray Dalio’s Bridgewater Associates also revealed plans to invest in a crypto fund.

Alexander Mamasidikov, co-founder of digital mobile bank MinePlex, commented, “The sustained capital inflows into digital currencies suggest that investors don’t want to be left behind by price movements—this could push Bitcoin to its highest level since November 2021.”

The Terra network, which is behind the Luna token, is also building a $10 billion Bitcoin reserve fund to back its stablecoin TUSD. Terra continues to purchase more Bitcoin daily, including over $100 million worth bought on Monday alone.

Yuya Hasegawa, a crypto market analyst at Japanese Bitcoin exchange Bitbank, noted that as prices fluctuated below $40,000, the Bitcoin futures market accumulated short positions—resulting in approximately $71 million in liquidations on Sunday.

“From a technical standpoint, Bitcoin has broken out of an ascending triangle, signaling a bullish trend and suggesting that it could continue to rise in the short term,” he said.

He also cautioned that markets should remain prudent ahead of this week’s upcoming personal consumption expenditure (PCE) and employment reports, noting that the results could lead to a 50-basis-point rate hike at the next Federal Open Market Committee (FOMC) meeting. Last week, Fed Chair Jerome Powell vowed to take aggressive action against inflation, indicating that larger rate hikes may be on the table if necessary.