Bitcoin is growing strongly due to the turbulent environment
Bitcoin is growing strongly due to the turbulent environment
The crisis in Ukraine – Russia is the driving force behind the growth of the cryptocurrency market.
Some experts say Bitcoin is regaining its haven status.
The state of war changes every hour, which changes the market context accordingly. Bitcoin (BTC) from risk sell-off in Ukraine is gradually regaining its status as an investor haven. The event was fueled by an anti-Russia ban by western countries.
Although the negotiations between Ukraine and Russia have not yet resulted in an official result, the cryptocurrency market has reacted positively. Bitcoin sometimes hits the milestone $44,600 on the evening of March 1st, the highest level in the last 3 weeks, when the crypto market had a disappointing performance according to data from TradingView.
Other platform coins such as Ethereum (ETH), Binance (BNB), Solana (SOL) also saw a recovery. On the morning of March 2nd, the market cap reached the milestone 1,880 billion dollarsaccording to TradingView.
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At dawn on March 2nd, the cryptocurrency market continued to rally.
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Many investors in Ukraine and Russia decided to invest in the cryptocurrency market when some Russian banks were banned from the SWIFT international payment system. Not only small individuals, large organizations and institutions in Russia should put money into Bitcoin.
motivation ban
The Russian ruble has depreciated by 30%, partly due to the country being blocked by the international payments system and the geopolitical context. This has caused Russians to rush to find ways to move their money to another asset class.
Number of Transactions Bitcoin in Russian rubles has skyrocketed since May 2021. Additionally, the purchasing power of cryptocurrencies in the Ukrainian hryvnia has also increased significantly, according to Kaiko, a cryptocurrency data company.
Cryptocurrencies are becoming a way for the people of Ukraine and Russia to avoid inflation caused by intense conflicts.
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Bitcoin there are strong fluctuations. Photo: Bloomberg.
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“I don’t think that’s the only reason Bitcoin is so strong. But this is evidence that Russians are moving money abroad,” Mobius, founder of mutual fund Mobius Capital, told CNBC.
According to Ari Redbord, head of legal at TRM Labs, a cryptocurrency market research firm, is the amount of money the Russians have not yet transferred Bitcoin more. “Russia could disrupt the current financial situation if it converts all of its assets into cryptocurrencies,” Redbord said.
Turning Point for Bitcoin?
According to CNBC, the US government should not only target Russian banks, but also freeze assets of Russian giants (oligarchs) in the US.
The enormous increase in transactions in Russia is said to be attributed to the help of the super-rich. “Bitcoin could be a potential haven for Russian giants. Cryptocurrencies can become long-term holdings without worrying about liquidity,” said Ipek Ozkardeskaya, an analyst at Swissquote Bank.
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The connection between Bitcoin and tech stocks fall. Photo: Bloomberg.
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However, investing heavily in cryptocurrencies can be a double-edged sword. “NATO countries can ban cryptocurrencies. Some other politically unstable regions of the world are likely to buy more Bitcoin to hedge against risk,” commented Katie Talati, head of research at digital asset management company Arca.
The macro landscape is changing hourly depending on the state of conflict in Ukraine, suddenly turning Bitcoin from a risky asset back into an attractive option in a matter of days. “Ukrainian tensions are helping decouple cryptocurrencies from tech stocks. The growth over the past two days is proof,” Vijay Ayyar told CNBC.
Some experts believe that Bitcoin remains the leading tool for hedging. “In the current period, the economies in Europe show many differences. Combined with the event in Ukraine are two factors that explain the cash inflow Bitcoin. Bitcoin has the properties of gold when investors hold it for the long term,” said Stephane Ouellet, CEO at Financial institution FRNT stock.
In general, the market remains volatile due to the tense situation in Ukraine. “Risks may still arise, such as a failed outcome of negotiations or Russia launching more major military operations. The future is still unpredictable,” added Yuya Hasegawa, a cryptocurrency expert at exchange Bitbank.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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Bitcoin is growing strongly due to the turbulent environment
Bitcoin is growing strongly due to the turbulent environment
The crisis in Ukraine – Russia is the driving force behind the growth of the cryptocurrency market.
Some experts say Bitcoin is regaining its haven status.
The state of war changes every hour, which changes the market context accordingly. Bitcoin (BTC) from risk sell-off in Ukraine is gradually regaining its status as an investor haven. The event was fueled by an anti-Russia ban by western countries.
Although the negotiations between Ukraine and Russia have not yet resulted in an official result, the cryptocurrency market has reacted positively. Bitcoin sometimes hits the milestone $44,600 on the evening of March 1st, the highest level in the last 3 weeks, when the crypto market had a disappointing performance according to data from TradingView.
Other platform coins such as Ethereum (ETH), Binance (BNB), Solana (SOL) also saw a recovery. On the morning of March 2nd, the market cap reached the milestone 1,880 billion dollarsaccording to TradingView.
|
At dawn on March 2nd, the cryptocurrency market continued to rally.
|
Many investors in Ukraine and Russia decided to invest in the cryptocurrency market when some Russian banks were banned from the SWIFT international payment system. Not only small individuals, large organizations and institutions in Russia should put money into Bitcoin.
motivation ban
The Russian ruble has depreciated by 30%, partly due to the country being blocked by the international payments system and the geopolitical context. This has caused Russians to rush to find ways to move their money to another asset class.
Number of Transactions Bitcoin in Russian rubles has skyrocketed since May 2021. Additionally, the purchasing power of cryptocurrencies in the Ukrainian hryvnia has also increased significantly, according to Kaiko, a cryptocurrency data company.
Cryptocurrencies are becoming a way for the people of Ukraine and Russia to avoid inflation caused by intense conflicts.
|
Bitcoin there are strong fluctuations. Photo: Bloomberg.
|
“I don’t think that’s the only reason Bitcoin is so strong. But this is evidence that Russians are moving money abroad,” Mobius, founder of mutual fund Mobius Capital, told CNBC.
According to Ari Redbord, head of legal at TRM Labs, a cryptocurrency market research firm, is the amount of money the Russians have not yet transferred Bitcoin more. “Russia could disrupt the current financial situation if it converts all of its assets into cryptocurrencies,” Redbord said.
Turning Point for Bitcoin?
According to CNBC, the US government should not only target Russian banks, but also freeze assets of Russian giants (oligarchs) in the US.
The enormous increase in transactions in Russia is said to be attributed to the help of the super-rich. “Bitcoin could be a potential haven for Russian giants. Cryptocurrencies can become long-term holdings without worrying about liquidity,” said Ipek Ozkardeskaya, an analyst at Swissquote Bank.
|
The connection between Bitcoin and tech stocks fall. Photo: Bloomberg.
|
However, investing heavily in cryptocurrencies can be a double-edged sword. “NATO countries can ban cryptocurrencies. Some other politically unstable regions of the world are likely to buy more Bitcoin to hedge against risk,” commented Katie Talati, head of research at digital asset management company Arca.
The macro landscape is changing hourly depending on the state of conflict in Ukraine, suddenly turning Bitcoin from a risky asset back into an attractive option in a matter of days. “Ukrainian tensions are helping decouple cryptocurrencies from tech stocks. The growth over the past two days is proof,” Vijay Ayyar told CNBC.
Some experts believe that Bitcoin remains the leading tool for hedging. “In the current period, the economies in Europe show many differences. Combined with the event in Ukraine are two factors that explain the cash inflow Bitcoin. Bitcoin has the properties of gold when investors hold it for the long term,” said Stephane Ouellet, CEO at Financial institution FRNT stock.
In general, the market remains volatile due to the tense situation in Ukraine. “Risks may still arise, such as a failed outcome of negotiations or Russia launching more major military operations. The future is still unpredictable,” added Yuya Hasegawa, a cryptocurrency expert at exchange Bitbank.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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