Crypto and stock markets rose on Friday after Russia agreed to negotiate with Ukrainian officials. As the rise continues, some analysts have warned that the rise may be short-lived due to geopolitical uncertainty.
The fact that many altcoins outperformed Bitcoin was interpreted as there is still risk appetite among investors. Bitcoin has been relatively stable in the last 24 hours compared to a 10% rise in LUNA from 5% in XRP. Some investors expect the recovery in the crypto market to continue due to the spike in volatility.
But some disagree. QCP Capital, a Singapore-based crypto trading firm, said in a statement that these gains in the spot will likely be met by aggressive spot selling.
Volume Rises
On the other hand, Bitcoin’s trading volume on major exchanges has also reached its highest level since the price crash on December 5th. But still, the trading volume has been in a downtrend for the past few months.
According to CoinDesk, David Duong, Head of Institutional Research at Coinbase, said in an email to customers on Friday, “User volumes on the exchange remain low despite large moves in the crypto space. This shows that the appetite for risk has decreased.
Bitcoin is trading at $ 39,100 at the time of publication.
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