Bitcoin backs off three-week high amid Ukrainian developments

Bitcoin fell on Wednesday away from three-week highs yesterday on active profit-taking, as investors avoid purchasing high-risk assets for the time being.

Bitcoin is closely following the pace of global stock markets as they all share a certain risk profile.

At Bitstamp, Bitcoin declined $615.51, or 1.5% to $41,779, with an intraday high at $42,554.

Bitcoin rose over 3.3% on Tuesday, marking three-week highs at $43,337, on strong investment demand above the $40,000 line.

Market value of cryptocurrencies fell $40 billion to a total of $1.89 trillion as most major cryptocurrencies recede.

US officials have said that America and allies are preparing new sanctions on Russia ahead of a NATO summit in Brussels this week.

US President Joe Biden is heading to Brussels on Wednesday, while meeting G7 leaders and speak ahead of European leaders at the European Council.

The west is preparing even more sanctions against the Kremlin as the humanitarian crisis intensifies in besieged Ukrainian cities despite the peace talks.

To counter these sanctions, Russia is planning to use the ruble when selling gas to unfriendly countries, while warning that sanctions on Russian energy supplies would demolish the global energy market.