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EU

The EU has promised to provide guidance on monitoring cryptocurrency if it is used to circumvent sanctions.

It could happen, but on such a small scale that authorities would be unconcerned, so this is a moot point in my opinion. Aside from that, many experts don’t see the point in bothering themselves so much with monitoring this when they can focus their efforts elsewhere, such as ensuring that it works.

Bitcoin

• Bitcoin has started the week with a decline, as have all risky assets, on reports of increased hostilities in Ukraine.
• Bitcoin (BTC) is trading at $38K for the second day in a row, remaining 13% lower than a week ago. Ethereum has lost 1.3 percent in the last day, while the top ten altcoins are moving in the range of +1 percent (BNB) to -4 percent (XRP). The total capitalization of the crypto market fell by 0.2 percent over the day, to $1.71 trillion, according to CoinMarketCap.
• The Bitcoin Dominance Index increased by 0.1 percentage point to 42.4 percent. The Fear and Greed Cryptocurrency Index fell 2 points in a day to 21 and remains in “extreme fear.”
• Despite the decline in stock indices, BTC managed to turn against the tide in the middle of the day, recouping the initial failure.
• Over the weekend, the United States discussed the possibility of imposing a ban on Russian oil imports, which could result in an increase in energy prices and a slowing of economic growth. According to Santiment, big players are stockpiling USDT during bitcoin’s decline in order to buy the first cryptocurrency at a lower price. According to Whale Alert, a wallet containing 407 BTC “reawakened” after being inactive since 2013. It is possible that he will make significant deals in the near future.

European equities

• European equities are roaring back as the EU looks to increase energy and defence spending.
• Market sentiment has shifted to a more positive tone
• European equities were poised for a rough day at the start, but have since recovered.
• Most regional indices are up more than 1% on the day, with US futures also improving as overall sentiment improves. The S&P 500 futures are currently up 0.4 percent. Bond yields are also rising, with 10-year bund yields now nearing 0.09 percent after opening at -0.02 percent. Ten-year Treasury yields have also risen by more than 11 basis points to 1.86 percent.
• This is a significant step by the EU to try to finance energy and defence spending in order to deal with the fallout from the Russia-Ukraine war, with the proposal possibly being presented at an emergency summit later this week on March 10-11. The report mentions that the details are still being worked out, so things are a little light at the moment. The market is jumping first and then ironing out the kinks later.
•  There will be some disappointment. This basically signals the EU’s potential energy reform, but it will take time and, as with all things involving legislators, we may see things move more slowly.
•  It’s a good first step, but the follow-up must deliver or else this will become yet another white elephant project.

Gold

• Commodities are roaring today, and amid the more gloomy risk mood, gold is starting to catch a bid once more.
• Price is now trading back above $2,000, reaching its highest level since August 2020. It’s difficult to oppose the momentum in the commodities market right now, and with equities in decline and central banks on the verge of tightening, gold has found a bit of a sweet spot to shine in recent weeks.
• Technically, there is little chance of a push towards $2,050 and then the August 2020 highs around $2,070-75.
• However, for the day, a close above $2,000 would be the first important step for buyers.