The Ukraine marked a turning point” for Bitcoin as asset, say analysts

The Ukraine marked a turning point” for Bitcoin as asset, say analysts

The price jump from Bitcoin is an indication that, according to market participants, the cryptoasset could become a risk averse asset from a risky asset, although the movements will provide more information in the coming weeks as to whether this is long -term or not trend.

According to Blockworks, the price for a Bitcoin at 11:30 a.m. ET was around $ 43,900, which corresponds to an increase of 7 % in the last 24 hours. The price had increased by almost 19 % or 15 % in the last seven days and 30 days, as the data at that time showed.

"I see the transition from Bitcoin from a risky to a risky asset, and so far the crypto has made good progress in this way in 2022," said Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence.

The price of Bitcoin crashed last week when Russian troops marched into Ukraine, which indicates a stronger correlation with technology shares than with gold or other safe ports.

industry observers said that the price recovery could prove the view of some investors that Bitcoin remains secure against inflation or market uncertainty.

"If freedom and individual freedom are threatened, the price of Bitcoin is increasing," said Antoni Trenchev, co -founder and managing partner of Nexo.

"In addition to overall sales on the market in the past few weeks, a recovery has been inevitable."

Bitcoin has dropped by about 4 % in the previous course, compared to the Nasdaq 100 Index, which has fallen by about 13 % during this period, said McGlone on Tuesday morning. This difference comes despite the fact that Bitcoin is traded with an annual volatility that is about three times as high as that of the stock index, explained McGlone.

"The Russian invasion in Ukraine could have marked a turning point in the transition from Bitcoin to global digital collateral in a world that developed in this way," he said to block works. "All risk systems are exposed to the ebb of the US stock market this year and are faced with the reluctance of the Fed and the war. Cryptos are among the most risky assets, but Bitcoin is the least risky crypto."

countries around the world have imposed sanctions on being aimed at isolating the Russian economy from the global financial system. President Biden's recent step freezes Russian assets in the United States and forbids the Americans to do business with the Russian central bank. CNBC reported Monday.

Derek Lim, Head of Crypto Insights at Bybit, found that the cryptom market will probably have lower volatility rates in the near future, since economic sanctions against Russia have triggered a decoupling between Bitcoin and the stock market.

Russians buy Bitcoin now with ruble, which led to a BTC offer shock that had driven the price up, he explained. Bitcoin has also achieved a certain legitimacy as a hard asset, since the media are more reported on how the Ukrainian crypto turn to help them with this crisis.

"Whether this decoupling between BTC and the stock market is a long -term trend or just a short -term event is still in the stars," said Lim. "We will continue to observe how the cryptom market will react to messages in the next few days and weeks."

Mikkel Mørch, Executive Director at the KRYPTO Hedge fund Ark36, agreed that the latest rally could be important for the Bitcoin application.

"The largest crypto asset is now checking a possible decoupling of risk systems, and this in a time unexpected uncertainty," he said in Blockworks in an email. "In the past, the king was in cash in times of crisis, but now rising inflation rates and wider macroeconomic problems make large amounts of cash to be kept at risk."

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The contribution "Ukraine marked a turning point" for Bitcoin as a asset, according to analysts, is not a financial advice.