- U.S. President Joe Biden announced the ban of Russian oil and gas import.
- But the European Union cannot afford to join amid an already worsening inflation.
- The Russian officials threaten heavy consequences and a possible sealing of its gas pipeline to Europe.
- U.S. equities tumble, but Bitcoin defies the trend, hinting at a possible sanctuary status.
- Will the BTC rally last longer than several trading sessions?
YEREVAN (CoinChapter.com) – On March 8, U.S. President Joe Biden’s administration banned the import of Russian gas and oil as a continuation of their sanctions over the country’s invasion of Ukraine. The embargo aimed a direct hit at Russia’s primary source of revenue.
Today, I am announcing the United States is targeting the main artery of Russia’s economy. We’re banning all imports of Russian oil and gas energy. That means Russian oil will no longer be accepted in U.S. ports, and the American people will deal another powerful blow to Putin’s war machine.asserted President Biden.
The European Union can’t afford the oil ban
However, only 8% of the imported oil and gas in the U.S. came from Russia last year. The European fuel import landscape is much different, with Russia being the single biggest energy supplier. The EU depends on Russia for about 40% of its natural gas.
Additionally, Russia supplies about 27% of the Union’s oil imports and 46% of its coal imports. Taken together, that trade is worth tens of billions of dollars a year to Russia. Yet, as President Biden added, the U.S. moved on with the ban, understanding that “European allies won’t be able to join” them.
Also read: Bitcoin is a weapon system, says U.S. Space Force, as Russia threatens a nuclear response.
Frans Timmermans, EU climate policy chief, asserted that the ongoing war underscored the importance of stepping back from their dependency on Moscow. He added that Europe could replace 100 billion cubic meters of Russian gas imports by the end of 2022.
That is two thirds of what we import from them. Two thirds by the end of this year. It’s hard, bloody hard but it’s possible if we’re willing to go further and faster than we’ve done before.he said to reporters.
Meanwhile, Russia attempted to retaliate and threatened to cut off the European gas pipeline if NATO didn’t step back.
Record oil prices and crashing stock market
As the war in Ukraine rages on, Russian Deputy Prime Minister Alexander Novak announced on Monday that the decision to ban Russian energy would cripple the global economy.
It is absolutely clear that a rejection of Russian oil would lead to catastrophic consequences for the global market. The surge in prices would be unpredictable. It would be $300 per barrel if not more.said the official.
He also added that it would take years for Europe to pull back from Russian fuel, and the “consumers would pay the price.”
However, global consumers already feel the effect on their wallets, as American drivers pay the most they’ve ever coughed up for gasoline. The national average stood at $4.17 per gallon on Tuesday.
Furthermore, the U.S. equities remain fragile, as the mentioned cluster of fundamental factors hit the risk trade. The stock market (S&P500) tumbled under strain and dropped 5.7% since March 3.
In detail, the risk-on assets, such as equities tend to tremble in times of economic instability. As CoinChapter previously reported, the cryptocurrency market heavily correlated with risky assets in the previous months. However, Wednesday’s Asian-Pacific session saw Bitcoin (BTC) soar nearly 8% in 24 hours, possibly establishing a sanctuary status.
Will the Bitcoin recovery last?
The leading digital asset traded near $41,500 early on March 9. Furthermore, Bitcoin’s rally came in unison with an explosive surge in Gold price that exceeded $2,000 for an ounce.
However, it is too soon to tell if the alpha crypto rejoined the safe-haven assets. Moreover, the BTC/USD price action has been trading in a Symmetrical Triangle, which could dampen the digital asset’s further recovery.
The bearish setup entails two converging trendlines that enclose the price action and prevent sharp breaks in either direction. According to theTriangle, BTC could either rise an additional 6% and retest the resistance or erase the intraday gains and retest the support.
However, if the setup remains relevant, short-term development could result in a 35% price drop, equal to the maximal distance between the trendlines.
Traders should consider that any long-term predictions concerning the Bitcoin value might tumble in the rapidly changing macroeconomic environment. Thus, the upcoming sessions and global events will shed more light on Bitcoin’s possible price fluctuations.