Cryptocurrency prices were surging Tuesday following reports that Russian troops were pulling back from the Ukraine border.
Bitcoin was up 4.5% to $44,144, according to Coindesk, while ethereum rose 7.4% to $3,111 and dogecoin was up 3.4% to $0.149840.
'Stocks are Moving in Lockstep with Headlines'
The jump in prices as investors reacted to reports that Russia has pulled some of its troops from the Ukraine border amid what appears to be a de-escalation of tensions between the adjacent eastern European nations.
Russia’s Defense Ministry said on Tuesday that some troops deployed from military districts bordering Ukraine were being loaded onto trains and trucks and sent back to their garrisons, according to the New York Times.
The NATO secretary-general, Jens Stoltenberg, urged caution over Russia’s troop announcement, saying that members of the alliance “have not seen any sign of de-escalation."
President Joe Biden said Tuesday that the United States has not verified the Russia has begun to withdraw troops and its forces “remain very much in a threatening position.”
Stocks finished higher with the Dow Jones Industrial Average climbing 422 points, or 1.22% at the closing bell.
David Bahnsen, chief investment officer with The Bahnsen Group said that "stocks are moving in lockstep with headlines from the Russia/Ukraine situation, and any indication of thawing tensions between Russia and Ukraine is enough to spark a small rally in stocks."
Analysts have suggested that tensions between Russia and the Ukraine were a factor in keeping bitcoin from hitting $50,000 following Sunday's Super Bowl.
The game was dubbed "The Crypto Bowl" due to the number of crypto companies that ran advertisements during the match, which saw the L.A. Rams beat the Cincinnati Bengals.
'We Can’t Lose Any More New Yorkers'
Nevertheless, Edward Moya, senior market analyst for the Americas with Oanda, said "crypto commercials played a big part in Sunday’s Super Bowl broadcast."
"FTX, Coinbase, Crypto.com and Etoro all had Super Bowl ads that reminded Wall Street that the cryptoverse is about to get a lot bigger," Moya said. "The FTX Super Bowl commercial with Larry David was brilliant and provided a justification for those that have gotten into crypto and perhaps a reminder for others they should be considering it."
Moya added that pressure is growing in New York "to ease up crypto regulation in fear of lost business opportunities."
"Seventeen states have passed crypto laws and further regulatory guidelines will mostly be positive for growth for the entire space," he said.
Moya noted that hedge fund titan Bill Ackman, CEO of Pershing Square Capital Management, recently asked New York's officials to "ease up on crypto barriers."
Ackman last week tweeted his concerns New York State Governor Kathy Hochul and New York City Mayor Eric Adams, saying "let's fix this right away."
"We can’t lose any more New Yorkers," he wrote. "NY is on its way to becoming a crypto center of innovation. Let’s remove barriers, create opportunities for growth and innovation, and help our state and city!"
