After reaching $39,240, the pair quickly reversed course as Biden confirmed the plans, adding to oil’s already robust gains and putting further pressure on stocks and risk assets.
“Today, I’m announcing that the United States is targeting the main artery of Russia’s economy,” he stated during a press conference.
They’ve banned all imports of Russian oil, gas, and energy. This implies that Russian oil will no longer be accepted at US ports, and the American people will give another powerful blow to Putin’s war machine.
On the announcement, Brent crude hit a high of $133 per barrel, but US markets had little to cheer about, with the S&P 500 down 0.5 percent on the day at the time of writing. Bitcoin, which is still trading within a familiar range, avoided serious losses by bouncing back to $39,000.
Meanwhile, gold jumped back beyond $2,000 per ounce on the latest twist in the Russia–Ukraine conflict, aiming for all-time highs. Similarly, not everyone was convinced that the worst was yet to come for stocks.
In what should be a bright lining for Bitcoin bulls, popular analytics account BTC fuel identified the equities market-related economic anxiety index, indicating that stocks may have already delivered their drop if history is any guide.
The biggest uncertainty was during the massive capitulation for the six occasions this happened. More crucially, stocks rose in the months that followed, rising by 18% on average after three months, they noted.
The most recent and significant such event in Bitcoin’s history was the March 2020 COVID-19 crash and its aftermath.