Bitcoin bulls appear to be reawakening as geopolitical parameters improve. Reports that Joe Biden has agreed in principle to meet with Russian President Vladimir Putin in what could be a last-ditch diplomatic effort to resolve tensions surrounding Ukraine and avert a Russian invasion have crypto investors virtually going long.
At the time of writing, BTC is trading at around $39K, with a market capitalization of $741 billion.
During an interview on Sunday night, US press secretary Jen Psaki said the meeting would come after a meeting between Secretary of State Antony Blinken and his Russian counterpart, Foreign Minister Sergey Lavrov. The meeting is scheduled for later this week. Psaki stressed that this agreement is conditional on Moscow refraining from an invasion.
In a statement, Psaki stated that the president repeatedly stated that diplomacy would continue until an invasion occurred. Following the completion of the engagement with President Putin, Biden agreed to meet him in principle, assuming there is no invasion. “Diplomacy continues to be our top priority.”
Before this week’s price recovery, Bitcoin fell below $40,000 and dropped sharply as tensions on the Ukraine-Russia border grew and inflationary fears persisted. The majority of other major crypto assets have also declined.
Investors may have also fled cryptocurrency due to an exploit of OpenSea, the leading NFT platform. Over the last year, $40k has been a critical level for Bitcoin. Every time the price fell below and then reclaimed it, we saw a large rally to the upside. This could be an important area to keep an eye on right now.