Bitcoin’s [BTC] recovery in question as Russia-Ukraine conflict anniversary nears

ambcrypto.com:

Bitcoin [BTC] bulls have been called into question despite the rally they have delivered so far this year. There are multiple reasons why many analysts expect prices to remain suppressed, and one of them is the ongoing conflict between Russia and Ukraine.

Is your portfolio green? Check out the Bitcoin Profit Calculator

Bitcoin was initially on a healthy uptick before the war started having a negative impact, especially in the form of inflation. This was because of unstable conditions caused by such conflicts discourage investment.

On the other hand, Bitcoin turned out to be more useful to those affected, whether in Ukraine or Russia, as it became one of the most accessible forms of money. However, the risk of another major retracement will remain.

The conflict in Ukraine does not have a direct correlation with Bitcoin. It is just one of the indirect factors that has contributed to inflation and disruption in the global economy. Meanwhile, the Federal Reserve is slowing its quantitative tightening measures which have been sucking the liquidity out of the markets. This is a major reason why Bitcoin fell in 2022, and why there has been some recovery with dropped interest rates.

What does this all mean for Bitcoin in the short run? Well, there is still room for the Fed to raise rates higher to hit its target rate by June. The next FOMC meeting is still a few weeks out, but there are some significant outflows.