Bitcoin reverses its decline and rebounds 8% in 3 hours

Key facts:
  • The price of BTC touched $40,000 this afternoon after reversing its decline.

  • Gold, meanwhile, fell 3.5% to end at USD 1,910 an ounce.

After a record drop this Thursday, with the announcement of the Russian invasion of Ukraine, the price of bitcoin saw an 8% rally in three hours and is trading at $38,366 at the time of writing. At the same time, gold reversed its early morning rally on Thursday, falling from $1,980 to $1,904.

As a result of the rebound in the price of bitcoin this Thursday afternoon, it recovered the levels of 24 hours ago, even registering a 3.1% rebound, according to the CriptoNoticias price index.

On Thursday morning, this outlet reported a 9% decline in the price of bitcoin, which coincided with a 3.5% rally in the price of gold. Simultaneously, due to the coupling of bitcoin with traditional assets, these also registered a decline.


The chart below shows the opposite situation: bitcoin and the S&P 500 take an upward path (upper panel), while gold pulls back and returns to the $1,900/oz mark (lower panel).

Bitcoin recovers the price levels of Wednesday, February 23. Source: TradingView.

The change in behavior of the main stocks on Wall Street could be due to the fact that many long-term investors took advantage of the drop in prices to buy at discount prices. As for bitcoin, the fact of remaining above USD 34,000 could have favored the perception among investors of facing a risky asset whose price can consolidate after this crisis.