After not that positive signs earlier next week, Bitcoin and cryptos in general have been on the rise. A week ago, Russia invaded Ukraine out of a sudden, shelling military installations and even civil objects in an attempt to ‘denazify’ its neighbor. A lot of things have happened so far, including a threat of a nuclear war. What the war also did was drive the prices of Bitcoin and cryptocurrencies up, the first major price move we’ve seen in months.
In the past few months, Bitcoin was locked in a downward trend that resulted in it dropping under $35K less than two weeks ago. While initial price drops were real just as the Russia-Ukraine war started, sanctions imposed on Putin and Russia by the West drove the crypto prices up. Increased demand is one reason, while another reason is the possible use of cryptos in Russia on a massive scale now that the country has been cut off from the SWIFT protocol.
Major Price Hike
Bitcoin neared the $45,000 mark on more than a few occasions in the past day, with other crypto prices soaring as well. Gold and oil prices jumped as well in the wake of the Russia-Ukraine war that’s been affecting all markets around the world. The financial sanctions imposed on Russia will likely drive prices of everything up, with the world and especially Europe fearing inflation. One market that’s so far been affected positively are cryptos that have been on a soar since the first Russian sanctions were announced.
What’s behind the price hikes? While there’s no single factor behind it, increased adoption of cryptocurrency and large buys from Russia are certainly among the major reasons. Whenever there’s a global crisis and fiat money starts to lose value like the Ruble is right now, people invest heavily in cryptocurrencies.
At the same time, the West has slapped sanctions on Russia’s oligarchs and the country as a whole. With no access to billions of dollars, the Russian top has apparently turned to crypto. With no end in sight for the hostilities in Kyiv and all of Ukraine, experts believe that Bitcoin will go past $45,000. It will be the first time in months and a glad return to form for cryptos.
Russians are Buyers Right Now
Crypto veteran investor Mark Mobius says that while he wouldn’t be a buyer now, he would buy Bitcoin if he was Russian. It’s fair to say that even if the war stops today, sanctions on Russia would not ease up. The West is fed up with Putin’s games and threats and will likely hunt at least the oligarchs down with financial sanctions.
Currently trading for over $43K, Bitcoin will most likely surge again in the coming days and weeks. While buying and using Bitcoin is not the long-term answer to Russia’s problems, average Russians will find solace in it. As they buy more and more crypto and as Ukraine gets crypto donations, prices are set to soar in the period ahead.