According to experts, Bitcoin gained traction as a transaction of last resort amid the ongoing war between Russia and Ukraine for those unable to access gold.
Amidst a positive price trend in the crypto market at a time when there is a general decline in stock markets during the ongoing geopolitical crisis, Bitcoin enthusiasts hope that the popular crypto asset will soon reach its highest value. Some already anticipate a value of $50,000.
The war between Russia and Ukraine and evidence has already emerged that both countries are using cryptocurrencies to evade international sanctions or pay for the war itself. The negotiations with Bitcoin in rubles and hryvnias are at a maximum, while experts warn that electronic assets can be a refuge for the Russians.
Analysts are betting that the rises will continue in the heat of tensions in Ukraine. Specifically, it is likely to hit $50,000 before the end of this month, said Nigel Green of deVere Group. “In the last 24 hours, Bitcoin rose over $6,000 at one point to exceed $44,000, its biggest daily increase since February 2021,” he noted, which is why he believes that “We can expect to see Bitcoin hit $50,000 by the end of this month.”
“Traders believe that the people of Russia and Ukraine are really behind the current bitcoin rally. But a crucial factor to keep in mind when it comes to the bitcoin price is that If the US begins to see that the Russians are using bitcoin as a means of avoiding sanctions, it is very likely that they could push for coordinated action to ban the digital currency.”noted Naeem Aslam, head of research at AvaTrade.
“Banning Bitcoin under that scenario will bring much greater volatility to the price. It can shake the entire financial market because many companies have massive exposure of their balance sheets to this asset. “, added the expert.
From the point of view of technical analysis, “it is still early to launch the bells on the fly, but there is no doubt that the sensations are better with each passing day,” said José María Rodríguez, a technical analyst at Bolsamanía. “But until it jumps clear above $46,000 nothing has happened here,” he added.
Green has also referred to some reports suggesting that institutions – which bring enormous capital, experience and reputational influence – are now the dominant cryptocurrency traders. “As more and more institutional investors take control of the sector, credibility increases, trading volumes rise and volatility falls, this is all good news for ordinary investors”.
Source: Ambito
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