Building on its bullish momentum, Bitcoin (BTC) was on the verge of reaching the $45,000 region last night as speculators bet on positive rate hikes in 2022 and a surge in whale addresses, and BTC is proving a safe haven in the face of complicated geopolitics.

BTC/USDT 1 hour candlestick chart | Source: TradingView

Data from TradingView shows that Bitcoin has hit a local top at $44,951 on Binance. Compared to the same time last week, BTC/USD is up 17%.

“The $40,000 area has been tested many times and has become a strong support when the market takes a surprise dip,” summarizes popular Twitter account DonAlt.

As a result, Bitcoin has improved its image as a potential safe haven in times of conflict, reversing initial losses when hostilities in Ukraine began last weekend.

Analyst Nebraskan Gooner says BTC needs a daily close above $43,600 to maintain bullish momentum.

#Bitcoin

Low time frame traders need to watch for a close below $43,600

This is the key low timeframe level right now. pic.twitter.com/nl3xocLWw8

– Nebraskangooner???? (@Nebraskangooner) March 1, 2022

The trader cuts his bet on March rate hike in half

BTC’s price surged more than 4% to nearly $45,000 a day after posting its biggest 24-hour gain since February 2021 on the back of a series of sanctions against Russia, including a ban on access to the global banking system SWIFT concerns about its impact on global growth and inflation.

Swaps tied to the mid-March Federal Reserve meeting are forecasting a 24.5 basis point (bps) tightening from March 1, 2022. That suggests a 0.5bps gain by traders over the last month predicted is less likely.

US Futures Swaps – Federal Funds Rate | Source: Bloomberg

The trader has also reduced its estimate of the number of rate hikes in 2022 from seven to five, according to Bloomberg’s Lisa Abramowicz.

Overnight interest rate and rate hike/cut | Source: Lisa Abramowicz

The Fed’s reassessment of the outlook comes as investor demand for safe haven assets, including US Treasuries and gold, has surged in recent days.

Bitcoin, which had previously lost more than half of its value amid concerns about Fed rate hikes, has since rallied sharply after it was revealed Russians are buying the cryptocurrency to avoid sanctions. that:

“Bitcoin saw a major bullish move today as it appears to have regained its safe haven status as the conflict between Russia and Ukraine continues to deepen,” said Walid Koudmani, analyst at XTB Market.

Charles Edwards, founder of crypto fund Capiole, stated: “Bitcoin has proven to be a safe haven during times of global uncertainty. It has outperformed every other asset class since the invasion of Ukraine broke out.”

Bitcoin since armed financing with Russia began.

Relative to S&P ($ES), Crude Oil, Dollar and Gold. pic.twitter.com/zXTHaAUByR

— Cantering Clark (@CanteringClark) March 1, 2022

Data from crypto research firm CoinMetrics also shows an increase in the number of addresses holding at least 1,000 BTC, which are often viewed as “whales” by the industry. This rose from 2,127 on February 27 to 2,266 on February 28.

Addresses with balances greater than 1,000 BTC | Source: CoinMetrics

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