A Bitcoin (virtual currency) coin is seen in an illustrative photo taken at the Maison du Bitcoin in Paris, France, June 23, 2017. REUTERS/Benoit Tessier/Illustration

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NEW YORK/LONDON, Jan 24 (Reuters) – Bitcoin gained on Monday as buyers stepped in to buy the cryptocurrency, after falling to a six-month low on fears of a Russian attack on Ukraine and before the federal government this week. Reserve session.

The biggest cryptocurrency last rose 2.5% to $37,250 after falling to $32,951, its lowest price since July 23. That took losses from its all-time high of $69,000 hit in November past 50%.

Bitcoin is now at a critical juncture where analysts say further selling could reverse its long-term uptrend.

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The currency fell earlier Monday on rising tensions between Russia and Ukraine. NATO said it was putting forces on standby and bolstering Eastern Europe with more ships and fighter jets, in what Russia has denounced as escalating tensions over the Ukraine. Read more

Added to the mix was jitters over the Federal Reserve’s two-day policy meeting, starting on Tuesday, with the US central bank set to confirm that it will soon start draining the reservoir of liquidity that has supercharged stocks. growth. Read more

“The story is really how aggressive the tightening is,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York, noting that a decision by the Fed to reduce the size of its balance sheet will tighten the markets. terms and higher interest rates.

Cryptocurrencies fell along with other risky assets as “people largely retreat from risk,” he added. Shares also rebounded from their lows in afternoon trading.

Katie Stockton, founder of technical analysis firm Fairlead Strategies, said this week’s close above the $37,400 level, where there is support from the bottom of the Ichimoku cloud, may be the key to whether selling is a correction in an uptrend, or the start of a downtrend.

If Bitcoin fails to rally above this level, then “the long-term uptrend is essentially reversed by this breakdown,” she said.

Around $465 million in crypto assets have been liquidated in the past 24 hours, according to data from Coinglass, with Bitcoin transactions accounting for $167 million of that total.

Smaller cryptocurrencies, which tend to move in tandem with bitcoin, also fell but ended their lows. Ether, the second-largest digital coin, was last down 3.5% at $2,451, having previously hit $2,160, its lowest level since July 27.

US-listed cryptocurrency miners Riot Blockchain (RIOT.O) and Bit Digital (BTBT.O) and Marathon Digital (MARA.O) also rebounded from previous lows while crypto exchange Coinbase Global (COIN.O) pared most of the day’s losses.

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Additional reporting by Medha Singh in Bengaluru Editing by Rachel Armstrong, Mark Potter and Paul Simao

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