Russia-Ukraine tensions, pandemic, interest rate hikes, and other factors are in play as US stock market's major indices initially fell but then reversed. Inventor of Bollinger Bands: It may be time to consider buying the dip.

After the opening of the US stock market on the 24th, tensions between Russia and Ukraine escalated, causing the Dow to plummet more than 1000 points midday, with the Nasdaq dropping over 4%. The US dollar and gold rose while oil prices fell, and the fear index VIX hit a high of 38.94. Tech stocks, which were heavily hit, saw buying interest, with Meta, Amazon, and Microsoft turning from losses to gains. The four major indices reversed the downward trend, with the Dow rising nearly 100 points, the Nasdaq up 0.63%, the S&P up 0.28%, ending a four-day losing streak.

Bitcoin and Ethereum have both dropped below $33,000 and $2,200, respectively. Bitcoin hit a new low of $32,967 in several months. This downward trend has filled the CME futures gap left since July 2021.

Despite Russian President Putin denying plans to invade Ukraine, the United States has already deployed its aircraft carrier fleet in the South Pacific. Additionally, European leaders from the US, France, Germany, Italy, and the UK held a phone conference to consider sending reinforcements to Baltic and Eastern European NATO allies.

According to the BlackRock Investment Institute, interest rate hikes are not the main reason for the current stock market sell-off. The market has overreacted in the short term, so even if US bond yields continue to rise, stocks are still expected to rise. In the long term, the Fed will maintain a significantly reduced position, so the outlook for US bonds still faces challenges. Therefore, the rise in yields is not the main culprit for the stock market crash, but rather a virus-related concern triggering a bullish reversal.

In addition to BlackRock's statement, the crypto community also believes that rate hikes will not kill risk assets. Although there have been concerns in the financial industry this year about the Fed possibly raising rates up to 4 times in 2022, many claim this will end the current bull market. However, in the long run, many analysts do not view the future of risk assets so pessimistically.

Cryptocurrency technical analyst John Bollinger tweeted, "It's time to start considering the bottom of cryptocurrencies."

This article is authorized for reprint from Horizon News Network