Bitcoin Steadies Below Record High, Altcoins Retreat as Russia-Ukraine Tensions Rise

Bitcoin moved little on Wednesday, steadying just below a record high hit earlier this week as sentiment towards cryptocurrencies remained upbeat.

Bitcoin steadied just below a record high hit earlier this week on Wednesday, as sentiment towards cryptocurrencies remained upbeat on the prospect of friendlier U.S. regulations.

But major altcoins retreated for the day, as risk appetite was dented by increased tensions between Russia and Ukraine. Bitcoin’s pace of recent gains also slowed as markets awaited more tangible cues on policy under incoming President Donald Trump.

Bitcoin rose 0.6% to $92,074.4 by 00:13 ET (05:13 GMT). The world’s biggest crypto hit a record high of nearly $94,000 earlier in the day.

Bitcoin underpinned by Trump trade, MicroStrategy

Bitcoin rose sharply over the past two weeks, with gains sparked largely by Donald Trump’s victory in the 2024 presidential election.

Trump had promised crypto-friendly regulations, ramping up hopes that such a scenario will draw more institutional capital into crypto. Bitcoin exchange-traded funds saw heavy inflows since Trump’s win.

But focus was now on just what Trump’s policies will entail for crypto, with the president-elect set to take office in about two months.

Sentiment towards Bitcoin was also boosted by MicroStrategy Incorporated (NASDAQ:MSTR), the world’s biggest corporate holder of the coin, buying a record high $4.6 billion of the coin in the past week. MicroStrategy CEO Michael Saylor indicated that the company will keep buying more coins, issuing more debt to fund its purchases.

Crypto price today: altcoins falter amid Russia-Ukraine risks

But despite Bitcoin’s resilience, broader crypto markets retreated on Wednesday, as risk appetite was dented by increased tensions between Russia and Ukraine, especially as Moscow lowered its threshold for nuclear retaliation.

Risk appetite in stock markets was also seen faltering, as investors hunkered down before closely-watched earnings from market darling NVIDIA Corporation (NASDAQ:NVDA), due later on Wednesday.

In crypto, strong gains in the past two weeks also saw most altcoins subject to some profit-taking. World no.2 crypto Ether fell 0.8% to $3,110.35.

SOL, XRP and MATIC fell between 0.7% and 2%, while ADA rose 5%, albeit amid slim trading volumes.

Among meme tokens, Dogecoin fell 0.4%, although it still remained in sight of a three-year high hit earlier in November, after Trump’s victory.

Trump referenced the token with the formation of the Department of Government Efficiency, led by Elon Musk and Vivek Ramaswamy, adding to the social media buzz around the popular meme token.