With the price of Bitcoin climbing again, it’s not surprising that other cryptocurrencies are jumping too. This could prove to be a great investment tool and a way to circumvent sanctions in Russia.
The price of cryptocurrency is on an unstoppable climb this week. Prices rose by 8% and 20% respectively in NY’s trading hours and in two short sessions. At one point, it overtook Bitcoin’s market value at $44,964 per coin, bringing its total capitalization above $840 billion.
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With Ether reaching $3,000, and many other coins increasing in value, the cryptocurrency market is continuing to grow. For example, the value of terra’s LUNA is up 76% over the last week, according to CoinMarketCap– nearing an all-time high set in early December. Avalanche also advanced in this period.
Some people are turning away from cryptocurrencies in a world that is constantly shifting and where governments appear to be all around. However, the idea that these funds are detached from any government control makes them attractive because they can’t be influenced by anything besides supply-and-demand factors–not even warring conflicts overseas.
FRNT Financial Inc.chief executive, Stéphane Ouellette said;
Bitcoin is a digital gold standard. You can directly own the assets, and not governments or banks. When banking systems are unstable in one region (which is what is currently happening in Europe), bitcoin can be used to help stabilize the market. If people are diversifying away from the bank system, then it makes sense for BTC to be flooded.
Bitcoin Plunge As Russia-Ukraine War Intensified
Investors looking to make a profit are pushing the cryptos’ price higher. But, he stated that speculators may take advantage to drive the prices higher. This will make their investments pay off exponentially faster than if they waited for more traditional markets like stocks or bonds where there’s always someone else who has already bought low before you do so yourself.
As the conflict in Ukraine escalated, global markets fell on Tuesday. Russia’s offensive continued despite increasing penalties. Russian troops continue to bombard civilian areas and military installations. They were accused by President Volodymyr Zeleskiy of terrorist acts.
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European stocks and US equity continued their fall along with Wall Street’s fear gauge, VIX.
It isn’t new to believe that Bitcoin could be an asset in times of geopolitical chaos. Analysts have known this for a long time. But, some analysts are pointing out that crypto’s performance amid volatility is a sign of things to come. It is likely that crypto will be just like other high-risk assets. But there’s still more work left before we’ll know how things ultimately play themselves out.
Analysis by Analysts on Crypto Rising
Adam Farthing, B2C2’s chief risk officer for Japan said that;
Bitcoin could “de-link from risk” and start trading more like a hedge to geopolitical instability and inflation.
Walid Koudmani is an analyst with XTB Market.
Bitcoin made a notable upwards move today. It appears that it has slightly regained some of its safe-haven status, while Russia-Ukraine conflicts continue to intensify.
Others are at work. The rally is about “the utility of these assets to serve as a potential workaround for Russia sanctions and also point that virtual currencies can be an alternative in times when people need them most,” said Nicholas Colas, co-founder DataTrek Research.
Featured Image from Pixabay. Chart by TradingView.com