Turbulent week and glimmer of hope for Bitcoin

Bitcoin is wrapping up a volatile week, having briefly spiked over $42,000 before another nosedive, which brought it well under $39,000.

Trading desk

Things briefly turned bullish on Friday after Vladimir Putin signaled some progress in talks with Ukraine, sending Bitcoin on a short escapade over $40,000. However, Putin’s comments were at odds with the fiasco of a recent meeting between Russian and Ukraine foreign ministers, not to mention the situation on the ground, and Bitcoin quickly cooled down.

At the same time, Delphi Digital found that the volume-adjusted put/call ratio went down to a monthly low of 0.44 this week due to a growing appetite for calls, which can be interpreted as a bullish forecast.

The volatile price action on Bitcoin comes amid fears that consumer price index (CPI) could soon hit a 40-year high of 7.8%, with rising gasoline prices contributing to a shift in the expectation that inflation would peak in March.