Signs emerge of Russian assets being unfrozen
The FT reports that the US is considering unfreezing some Russian assets to pave the way for peace talks in Ukraine. The Russian central bank reserves frozen by the West total about $300 billion. If these funds are released, cracks will appear in the sanctions framework.
Expectations of easing sanctions directly reduce the safe-haven premium, while a weaker US dollar index is a tailwind for risk assets. But news about negotiations is highly prone to reversals. After the initial sentiment-driven rally, a pullback is likely. If the previous high above isn’t broken, beware of a news-driven pump followed by distribution. The key is whether [assets] follow through with volume. If the broader market rallies on its own while major assets fail to follow, that’s a classic false breakout. A genuine breakout requires spot volume to keep expanding and open interest in futures to rise in tandem; otherwise, a spike is just handing short sellers a better entry.
Are you placing orders to chase longs here, or waiting for a pullback to key support before entering?
$BTC $ETH $SOL
The FT reports that the US is considering unfreezing some Russian assets to pave the way for peace talks in Ukraine. The Russian central bank reserves frozen by the West total about $300 billion. If these funds are released, cracks will appear in the sanctions framework.
Expectations of easing sanctions directly reduce the safe-haven premium, while a weaker US dollar index is a tailwind for risk assets. But news about negotiations is highly prone to reversals. After the initial sentiment-driven rally, a pullback is likely. If the previous high above isn’t broken, beware of a news-driven pump followed by distribution. The key is whether [assets] follow through with volume. If the broader market rallies on its own while major assets fail to follow, that’s a classic false breakout. A genuine breakout requires spot volume to keep expanding and open interest in futures to rise in tandem; otherwise, a spike is just handing short sellers a better entry.
Are you placing orders to chase longs here, or waiting for a pullback to key support before entering?
$BTC $ETH $SOL