On Thursday, BTC closed in positive territory, gaining 11% and reaching $39,800. Earlier, BTC slumped to the low of late January - $34,300.

At the moment of writing, the cryptocurrency was trading at $38,627. In November 2021, the leading digital asset reached an all-time high, surpassing $69,000. Since then, BTC has lost 45%.

Major altcoins also went up alongside bitcoin. Yesterday, Ethereum rose by 12% to $2,600, Binance Coin added 8% to $360, and XRP gained 10% to $0.69.

According to CoinGecko, the cryptomarket's total market cap has increased by 10% to $1.8 trillion. Bitcoin's market cap is now $668 billion.

BTC made gains early on Monday amid the ongoing war in Ukraine. Russia invaded Ukraine after Russian President Putin had recognized the independence of self-proclaimed Donetsk and Lugansk People's Republics. He labelled the Russian action against Ukraine "a special military operation in the Donbass".

In response, Western nations threatened to impose heavy sanctions on Russia. According to the head of European Commission Ursula von der Layen, the new sanctions package will seriously limit Russia's access to capital markets.

Due to the cryptomarket's unpredictable course, outlooks are mixed. According to analyst Benjamin Cohen, BTC would slump by 50% in the next few months.

Cohen pointed out that BTC has very often returned to 200-week MA during the correction phase. It is currently near $20,000.

Arthur Hayes, founder of BitMEX, also sees bitcoin dive to $20,000. He does not expect the key support level at $28,000-30,000 to be as strong as other investors think.

Sam Bankman-Fried, CEO of FTX, said the crypto market could likely rise steadily as geopolitical tension in Eastern Europe undermines the traditional financial system.