The Bitcoin (CRYPTO: BTC) price is up 5% since this time yesterday.
One Bitcoin is currently trading for US$40,616 (AU$52,207).
In a sign of the ongoing volatility of the world's top crypto. Over the past 24 hours, it's traded as high as US$$40,240 and as low as US$38,107.
Commenting on the Bitcoin price gains, OANDA Americas senior markets analyst, Edward Moya said (quoted by CoinDesk), "Bitcoin is higher on the day as risk appetite showed signs of life after U.S. stocks had the worst rout in a few years."
Are soaring commodity prices holding back the Bitcoin price?
Many crypto bulls had been expecting the Bitcoin price to rebound past US$50,000 by now.
Some have been pointing to cryptos' usefulness to ordinary Russians locked out of Visa and Mastercard, even as the value of the ruble tumbles.
However, it may be that the massive rise in commodity prices we're seeing is diverting some would-be crypto investors' money into these fast rising hard assets.
According to Moya:
Bitcoin's fundamentals are still sound, but many active traders are putting the crypto trade on hold and focusing on a handful of commodity supercycle trades. Bitcoin is forming a trading range and over the next few weeks it could trade between the US$35,000 and $45,000 trading range.
What's going on with commodities?
It's not every day we hear the Bitcoin price linked to commodity prices.
But then the incredibly rally we're seeing across a wide range of commodities, including crude oil, gas, coal, and nickel, is unprecedented.
Indeed, Brent crude oil is trading at 14-year highs. While coal recently broke into new all-time highs.
Commenting on the surging commodity prices, AJ Bell investment director Russ Mould said (quoted by The Australian):
The prospect of fresh sanctions on Russia, and moves to ban the purchase of commodities supplied by that country, is driving up prices of oil, gas, wheat, nickel, copper… Russia is a top-5 producer of palladium, diamonds, gas, oil, platinum, potash, aluminium, gold, nickel and steel.
That's some list.
And don't forget that Ukraine is also a major commodity producer. One whose exports will be hugely impacted by Russia's on-going invasion.
How will this all play out for the Bitcoin price in 2022?
Time will tell.
