Following a sharp selloff in cryptocurrencies after Russia launched strikes on Ukraine, the price of Bitcoin (BTC) has risen by 7%.
The last 48 hours have been a roller coaster for cryptocurrencies. According to Coindesk data, Bitcoin was trading roughly 7% higher in early morning trading Friday (February 25) at around $38,500.00 US.
The world's largest cryptocurrency has gone as low as $34,300.00 USD and as high as $39,000.00 USD in the last 24 hours.
A day earlier, as Russia initiated strikes on Ukraine, the whole cryptocurrency market lost as much as $150 billion in market value.
Other digital currency, like Ethereum (ETH) and XRP (XRP), are also seeing double-digit percentage rises as well.
As more institutional investors get engaged and short-term investors that trade Bitcoin like equities enter the market, Bitcoin's price has connected with other risk assets such as stocks.
Major indices closed higher Monday (February 24) after a spectacular intraday reversal in US markets. Cryptocurrencies have benefited from the upward trend in prices.
However, there is conjecture that a short squeeze is fueling the cryptocurrency recovery. When investors go short on a cryptocurrency, they are essentially betting that the price will fall.
Traders can short bitcoin by purchasing a futures contract that bets on the cryptocurrency trading at a lower price than it is trading at the time the contract is purchased.
According to Coindesk data, Bitcoin (BTC) went down more than 8% yesterday to around $34,700.00 USD. That's the lowest the largest cryptocurrency has been in a month. The second-largest digital coin, Ethereum (ETH), had lost more than 12% of its value and was trading at roughly $2,300.00 US dollars.
According to Coinmarketcap data, the whole cryptocurrency market has lost more than $150 billion USD in the last 48 hours.
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