The crypto market continues to rise today, March 2, even as the geopolitical crisis in the Middle East escalates.
Conclusion
- On Monday, the crypto market remained stable, even as war broke out in Iran.
- This rally took place while the economic impact of the crisis remained limited.
- A crypto recovery can be a cat’s dead beat, a situation where a fallen asset temporarily bounces back.
Bitcoin (BTC) rose to around $70,000, while Ethereum (ETH) rose to $2,065. Other top earners were coins like Near Protocol, Morpho, Virtual Protocol, Jupiter and Pudgy Penguins. The market capitalization of all coins reached more than 2.38 trillion dollars.
The crypto market rallied as the economic impact of the ongoing war in the Middle East remained muted. For example, the Dow Jones index retreated only 140 points, while the Nasdaq erased 100 previous losses and turned positive for the day.
The rise in crude oil prices was also less than expected, with Brent reaching $78 and West Texas Intermediate reaching $73. The two indicators were expected to rise above $100 by the start of the war.
A potential reason for the crypto market rally is the opposite buying rumors and selling news. In this case, investors dumped Bitcoin and other coins before the war and are now buying the news.
At the same time, the crypto market is rising as traders predict that the United States, Iran and Israel will reach a ceasefire in the near future. The probability of a ceasefire until March 31 reached 46%. Similarly, the probability of it reached 66% by April 30.
The crypto market is rising after relatively strong US macro data. According to S&P Global, the manufacturing PMI increased from 50.4 in January to 51 in February. Another ISM report showed that the manufacturing PMI increased from 51.7 to 52.4 over the same period.
Meanwhile, Michael Saylor’s Strategy and Tom Lee’s BitMine continued to rally Bitcoin and Ethereum last week. BitMine collected over 50k ETH while Strategy bought over 3000 Bitcoin. These acquisitions continued even as these companies suffered billions in losses.
However, there is a possibility that the current crypto market rally is a dead blow to the cat. DCB is a situation where a falling asset recovers for a short period of time and then resumes a downtrend.
