Ethereum, XRP and Tezos rebound as Bitcoin remains stable

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After Russia agreed to negotiate with Ukrainian officials on Friday, Bitcoin and other cryptoassets rose.

Ethereum, XRP, LUNA tokens gained 6%, 8%, and 10% respectively for the day, while Bitcoin was roughly flat. Other notable gainers in the crypto market include FTM and Tezos

On Friday, Kremlin spokesman Dmitry Peskov said Russian President Vladimir Putin was ready to send a delegation to Minsk. However, the situation remains unstable, with Russian forces stepping up their attacks on Kiev.

A later statement by the Russian president suggested he did not take the talks seriously.

On Friday, crypto markets saw bitcoin underperform most alternative cryptocurrencies (altcoins), suggesting investors were more willing to take risks.

Bitcoin’s unexpected rebound over the past two days could also be the result of a so-called short squeeze, analysts say. A short squeeze occurred on several altcoins after oversold conditions were reached.

The flagship crypto’s one-week implied volatility jumped to 75% annualized on Thursday, topping the one-, three-, and six-month indices, similar to what happened after the May 2021 crash.

An investor’s implied volatility describes their expectations for price volatility over a given period. However, the spot price of BTC may not rise significantly until the volatility spikes are over.

Despite big moves in the crypto space, consumer volumes on the exchange remain tepid, indicating reduced risk appetite and light market positioning.

Coinbase’s fourth quarter results were announced on Thursday and they beat revenue expectations. The exchange, however, warned shareholders that trading volumes could fall in the first quarter of this year due to high volatility.

Due to the downside risks that remain in the crypto market amid high global inflation, investors are looking to protect themselves by holding positions in US dollar cash and treasury bills. This is especially true when the market is extremely uncertain.

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