Bitcoin Rally Stalls Amid Skepticism Over Russia Pullback

The latest moves in crypto markets, in context

February 16, 2022

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Good morning, and welcome to First Mover. Here's what's happening this morning:

Market Moves: This week's rally in crypto markets appeared to be cooling as skepticism grew over Russia's pullback from Ukraine.
ALSO: Algorand's ALGO token leads gains among the CoinDesk 20, and the metaverse-related tokens SAND and AXS jumped.

And check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9:00 a.m. U.S. Eastern time. Today's show will feature guests:

Lennix Lai, director of financial markets, OKX
Alex Bornyakov, deputy minister, Ukraine Ministry of Digital Transformation
Jared Polis, governor of Colorado

Today's newsletter was edited by Shaurya Malwa and produced by Bradley Keoun.

Market Moves

By Shaurya Malwa

Bitcoin four-hour price chart showing the latest trading range for the largest cryptocurrency. (TradingView/CoinDesk)

Bitcoin surged past $44,000 late Tuesday, in its biggest gain in more than a week, but on Wednesday appeared to be losing steam.

Crypto markets cooled as major cryptocurrencies hit resistance levels. Bitcoin faced resistance at the $44,300-$45,500 price levels, and low volume indicated weak buying strength.

Algorand's ALGO token was the biggest gainer among the CoinDesk 20 digital assets, with a 6.4% rise. Filecoin's FIL token climbed 5.2%.

Investors in traditional markets grew more cautious as Western officials expressed skepticism over a quick de-escalation of the Russia-Ukraine tensions.

Outside of major cryptocurrencies, metaverse tokens continued to surge on Wednesday. In the past 24 hours Decentraland's MANA was up 10.5%, The Sandbox's SAND up 6%, and Axie Infinity's AXS up 11%. The tokens are used for blockchain-based games in separate virtual worlds broadly referred to as a "metaverse."

Meanwhile, traders said the general outlook for cryptos remained bullish amid improving sentiment for asset classes globally.

"After a strong rebound following January's 7.5% CPI print, cryptocurrencies have pulled back in line with traditional markets," said Will Hamilton, head of trading at Trovio Capital Management, in an email to CoinDesk.

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Crypto Prices

Bitcoin (BTC)

See the latest price here

Ether (ETH)

See the latest price here

The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours:

Biggest Gainers:

Asset	Ticker	Returns	Sector
Algorand	ALGO	+6.4%	Smart Contract Platform
Filecoin	FIL	+5.2%	Computing
EOS	EOS	+2.9%	Smart Contract Platform

Biggest Losers:

Asset	Ticker	Returns	Sector
Ethereum Classic	ETC	−0.9%	Smart Contract Platform
Cosmos	ATOM	−0.8%	Smart Contract Platform
Dogecoin	DOGE	−0.7%	Currency

Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.

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Latest Headlines

The OGs of NFTs get animated with the biggest stars from around the world in this entertaining new series from CoinDesk TV. Tune in Tuesdays in February at 4 p.m. ET.

ICYMI

In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:

Cryptocurrencies on the Rise as Some Russian Troops Pull Back From Ukraine Border, a Year After the GameStop Mania: Lessons Learned From Meme Investing

"First Mover" hosts speak to The Wall Street Journal "Heard on the Street" Editor Spencer Jakab as he explains the thesis in his latest book "The Revolution That Wasn't: GameStop, Reddit, and the Fleecing of Small Investors." Prices of bitcoin and alts are up on the heels of Russia's partial pullback of troops near the border with Ukraine. Seth Ginns of CoinFund provides his market analysis. Plus, CoinDesk's Nikhilesh De shares the latest news from the hearing of the couple with alleged ties to the 2016 Bitfinex hack.

Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.