The cryptocurrency market, which was going through a lean patch since early November, came under further pressure amid the Ukrainian conflict. The geopolitical tension sapped whatever risk appetite that was left in the market.
Even as the equity market staged a recovery late Thursday, the crypto realm was still languishing at depressed levels. It now appears that cryptocurrencies are playing a catch-up with stocks.
Bitcoin Leads Crypto Rally: Bitcoin (CRYPTO: BTC), the most valued crypto, is advancing sharply on Monday. After opening the session at $37,635.48, down from the previous session's close of $37,709.79, the apex quickly dipped to a low of $37,518.21 by around 1:15 a.m. EST.
Bitcoin rebounded to a high just short of $38,500 by 3:14 a.m. EST and then began a consolidation before taking off strongly by around 9 a.m. EST. In the process, the crypto rose to a high of $41,314.01, its highest price since Feb. 17.
If Bitcoin can hold support around $41,000 region, it could take a further leg up. Further above, it has overhead resistances around the $41,800 and $43,960 levels.
Source: CoinMarketCap
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Among the other notable gainers in the space are Cardano (CRYPTO: ADA), Terra (CRYPTO: LUNA) and Solano (CRYPTO: SOL).
Geopolitics Support Crypto: The Ukrainian crisis has brought to the fore the so far unappreciated use case of cryptos as "uncensored money," which is beyond the control of governments and central banks.
Ukraine has asked for donations that could provide the country with funding to take on the Russian invasion. The crypto community has stepped in and donated about $20 million in Bitcoin and Ethereum (CRYPTO: ETH), according to Coindesk.
The space may also be drawing strength from reports that suggest Russia is working on a digital "one world one currency" for trade.
At last check, Bitcoin was jumping 6.14% to $41,308.86.
