Bitcoin Cuts Losses After US Bans Russian Oil, Gold Rises to Record Highs

Bitcoin (BTC) erased and regained its daily gains at the end of March 8, when the President of the United States, Joe Biden, announced a complete ban on Russian oil imports.

1-hour candlestick chart BTC/USD (Bitstamp). Source: TradingView

BTC closes the circle as gold steals the show

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hit $38,000 an hour after Wall Street opened on Tuesday.

Having hit $39,240, the pair quickly changed course when Biden confirmed the plans, which added to oil’s already strong gains and put further pressure on equities and risky assets.

“Today I am announcing that the United States is targeting the main artery of Russia’s economy,” he told a news conference.

“We are banning all imports of Russian oil, gas and energy. This means that Russian oil will no longer be acceptable in US ports and the American people will deliver another powerful blow to Putin’s war machine.”

Brent crude rose to $133 on the announcement, while US stocks had little to celebrate, the S&P 500 is down 0.5% on the day at the time of writing.

Bitcoin, still within a familiar range, avoided big losses by returning to $39,000.

“I don’t know what will happen with the US embargo on price action. The natural reaction would be for USOIL to go up a little more while risk assets are falling,” however, Michaël van de Poppe, contributor to Cointelegraph . argued.

In fact, I think the opposite is true with the impact of a ‘buy the rumor, sell the news’ event.”

Gold, meanwhile, took advantage of the latest twist in the Russia-Ukraine saga, rebounding above $2,000 an ounce to hit all-time highs.

XAU/USD 1-week candlestick chart. Source: TradingView

Have the stocks bottomed out yet?

Likewise, not everyone was fully convinced that stocks had the worst ahead.

Related: Bitcoin dips below $40K, but BTC price hits another all-time high against the Russian ruble

On what should be an upside for Bitcoin bulls, popular analysis account BTCfuel has flagged the index of economic uncertainty related to the stock market, showing that – if history is any guide – stocks may have already shown their pullback.

“During the 6 times this happened, the peak of uncertainty was during the big capitulation. More importantly, stocks rose in the following months, after 3 months averaging 18%,” he added.

The last and only significant occasion in Bitcoin’s lifespan was the March 2020 Covid crash and its aftermath.