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Bitcoin Dominates Altcoins During War-Torn Month Of February

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Bitcoin has been rallying during the past 24-hours as the situation in Ukraine turns for the worst. The Russian Federation continues its attack on the Ukrainian territory. As the conflict ranges on, other macro factors playing against Bitcoin could be mitigated, at least, for the short term.

Related Reading | Russia Can’t Rely On Crypto As Shield From Crippling Sanctions, Analysts Say

At the time of writing, Bitcoin (BTC) trades at $43,807 with a 7.8% profit in the past 24 hours and a 20.5% profit in the last seven days.

Bitcoin BTC BTCUSD
BTC rallying on the 4-hour chart. Source: BTCUSD Tradingview

With the exception of Avalanche (AVAX) and Terra (LUNA), Bitcoin has been displaying significant strength compared to the rest of the crypto market. This could be related to the narrative around BTC, and its capacity to operate as a safe haven in times of turmoil.

Of the top 10 cryptocurrencies by market cap, only Solana (SOL) is close to BTC’s price performance for the past week with an 18.5% profit, at the time of writing. Followed closely by Ethereum (ETH) with a 14.5% profit, Binance Coin (BNB) with a similar rally, Cardano (ADA) with a 12.6% profit, and XRP with a 10.8%.

As mentioned, only AVAX and LUNA have outperformed Bitcoin. These cryptocurrencies record a 26.4% and 85% profit, respectively, over the same period.

According to a recent report by Arcane Research, Bitcoin was the best performing asset in February after the global markets faced a severe correction. Driven by the uncertainty around Ukraine and a possible rate hike in March, the price of BTC and other risk assets suffered.

Arcane Research records a 12% monthly gain for BTC’s price at the end of February. Thus, becoming the first month since October last year with positive price performance.

Bitcoin BTC BTCUSD AR
Source: Arcane Research

As seen in the chart, BTC’s monthly performance topped Arcane Research’s small, mid, and large index. The latter was able to record a 9% gain over the same period.

As a consequence of recent macro developments, Bitcoin has increased its dominance over the crypto market. Up almost 4% since January, this metric stands at 43% and could see more gains if the situation in Ukraine extends.

Only Ethereum (ETH) comes close to a similar percentage in terms of market dominance with 18.23%. Followed by Binance Coin (3.54%), XRP (1.93%), LUNA (1.75%), Bitcoin remains king in the crypto market.

The armed conflict in Europe could benefit risk-on assets if the U.S. Federal Reserve (FED) decides to delay its plans to increase interest rates. Thus, giving more terrain for a relief bounce for BTC and other cryptocurrencies.

A decision on interest rates should be announced in the coming weeks, so far, investors seem optimistic. On the other hand, BTC’s price has some obstacles in the short term.

Related Reading | Bitcoin As Safe Haven Asset On The Spotlight As BTC Crosses $43K

Data from Material Indicators records significant resistance at $45,000, $46,000 and $48,000. In total there are over $30 million in asks orders sitting at those levels. This suggests BTC’s price could have a tough time breaking above those levels for the time being.

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BTC’s price (blue line on the chart) with important resistance (asks orders in yellow above price). Source: Material Indicators

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