Bitcoin’s price spike, which briefly exceeded $44,500 Tuesday afternoon, is now easing.
BTC is down to approximately $43,912 by Wednesday. However, it is up close to $10,000 the last five trading days. It is also on track for a reclaim of January levels.
Bitcoin price rose more than 5% Monday as markets processed new developments in Russia’s invasion of Ukraine, despite risk aversion pushing down blue-chip and technology sectors, which cryptocurrencies have been linked to for weeks.
Markets may be underestimating the economic repercussions of Russia’s financial isolation. Russia’s economy and financial systems were crippled by sanctions.
The Russian central bank shut down the stock exchange to protect the ruble’s plummeting value. It also increased its interest rate by more than twice its previous level, from 20% to 20%.
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“At that point, Europe and the United States would have to put pressure on the largest exchanges — FTX, Coinbase and Binance — to ban the addresses linked with Russia, and no other major exchange would want to engage with funds that came from those addresses,” Michael Rinko, a venture associate at AscendEx, said.
Bitcoin’s Price Up 17% In 24 Hours
Bitcoin’s price rose by 17% on Monday due to increased buyer demand. Although it is too soon to identify a trend, crypto-analysts and advisors are watching to see if this breakthrough signals a more significant directional shift or “decoupling” from equities investments.
Source: TradingView.com| Source: TradingView.com
Bullish Hike For Bitcoin
Bitcoin’s price is up 2.40% in the last 24 hours, with a high of $44,953.06 and a low of $42,875.
The current market volume of the company is $1.67 Billion, while its market capitalization stands at $840.13 Billion.
The Russian-Ukrainian Crisis has caused volatility and decoupled stocks to BTC to rise, leading to a higher price for Bitcoin in the first week.
Bitcoin’s Future: Digital Gold
Bitcoin, on the other hand may have the potential to be competitive with gold or other safe-haven assets like stocks and government bonds in the future.
The unchangeable software code of Bitcoin increases the token’s supply at a pace comparable to that of gold, 0.5% to 1% every year.
The scarcity of gold helps it retain its value through times of economic distress and excessive inflation, and it’s not unrealistic to expect Bitcoin will do the same in the digital age.
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Crosshairs Still Available for $100K
Bitcoin could be a valuable store of value in countries with currency restrictions or dual-currency system, governance problems, corruption, and other issues.
Meanwhile, many analysts believe that Bitcoin’s price will eventually cross the $100,000 milestone; however, there are different viewpoints on when that will happen.
Deutsche Bank has conducted a survey and approximately 25% of Bitcoin-investors believe that the currency will reach $110,000 by five years.
Verve Times featured image, Chart from TradingView.com