Market Wrap: Bitcoin, ETH Fall as Traders Brace for Volatility Ahead

BTC regained correlation with safe-haven assets this week, only to diverge Thursday


Source: Shutterstock


key takeaways

  • Bitcoin and other cryptocurrencies fell sharply on Thursday as traders looked to lock in recent gains
  • Fed Chair Jerome Powell said the Ukraine-Russia conflict could worsen inflation and supply chains issues

Most top cryptocurrencies took a hit Thursday, selling off after notable pumps earlier in the week.

Bitcoin was still up 7.5% over five days — earlier in the week, the digital asset earlier regained its correlation with safe-haven assets such as gold and Treasurys as the conflict in Ukraine built up interest in such plays.

However, bitcoin dipped while gold gained Thursday, suggesting the correlation isn't absolute, especially when taking into account other factors driving the typical volatility in digital asset markets.

Federal Reserve Chair Jerome Powell testified for the second day before the Senate Banking Committee, saying inflation will likely increase. He said the conflict in Ukraine is a troubling development for an already-congested global supply chain.

“We’re going to see upward pressure on inflation, at least for a while," Powell said. “The [Ukraine-Russia war] is not going to help at all with supply chains, because ships are not being off-loaded."

February’s initial jobless claims report, released Thursday, showed a two-month low, hinting the Omicron variant's effect on the job market may be waning.

The S&P 500 fell by 0.53% Thursday, while the Nasdaq and Dow lost by 1.46% and 0.29%, respectively. Continued decreases movements over the past month are likely the result of geopolitical conflict and inflation, leaving investors in a lingering lurch.

[stock_market_widget type="accordion" template="chart" color="#5B35D5" assets="^GSPC,^IXIC,^DJI" start_expanded="true" display_currency_symbol="false" api="yf" chart_range="1mo" chart_interval="1d"]

Bitcoin fell sharply, shedding $1,855 or 4.27% by the end of stock trading hours. Ether took an even bigger hit, losing 4.75%. Anchor Protocol, which powers crypto savings accounts, was the biggest gainer among top coins by market capitalization two days in a row, jumping another 9.7% after yesterday's gain of almost 13%.

It is unclear why Anchor booked such large gains.

[stock_market_widget type="accordion" template="chart" color="#5B35D5" assets="BTC-USD,ETH-USD,ANC1-USD" start_expanded="true" display_currency_symbol="true" api="yf" chart_range="1mo" chart_interval="1d"]

Top stories

Story: SEC Reportedly Targets NFT Market Over Potential Violations of Securities Law

  • The SEC is especially seeking information on fractional NFTs
  • NFTs can be deemed securities if they pass the “Howey Test,” a regulatory standard used to determine if a transaction has an investment contract

Story: Increased Scam Reports Linked to Crypto, FCA Finds

  • The Financial Conduct Authority added 172 firms to its list of unregistered crypto businesses
  • More people checked the safety of cryptocurrency using the FCA’s ScamSmart Warning List tool than any other investment opportunity

Story: Blockchain Infrastructure Provider Looks To Bring Retail to Web3

  • Bringing real-world use cases front and center is key to adoption, especially on the retail side, an executive said
  • The company offers cryptocurrency mining infrastructure to retail and business clients that allows them to earn passive income

Story: Ukraine Cancels Proposed Airdrop After Receiving Record Donations

  • Over $12.5 million in digital asset donations were sent to Ukraine’s crypto wallets on Wednesday after the country announced a pending airdrop
  • “Instead, we will announce NFTs to support Ukrainian Armed Forces soon,” the country’s vice prime minister tweeted

Going forward

Bitcoin, other cryptos and equities all fell Thursday while gold, other safe havens and defensive stock ETFs jumped. It remains to be seen whether bitcoin trades in tandem with safe-haven assets as traders parse the influence of typical crypto volatility on market moves.

Volatility is expected to be a market mainstay in the buildup to the Fed's mid-March interest rate hikes and as the Ukraine conflict drags on.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg


In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.


BUZZ holds shares of Coinbase, Robinhood and MicroStrategy


Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile


The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally


While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders


Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume


DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit