Bitcoin price stabilizes despite rising geopolitical escalations
As global tensions continue to mount, Ukraine has harnessed the power of Bitcoin and other cryptocurrencies to raise funds for its military.
- Bitcoin’s ongoing price momentum has seen the digital currency wipe out its monthly losses completely.
- Analysts believe that Bitcoin has found its local price bottom, but for the cryptocurrency to resume its upward ascent, it needs to find support near the $42,000 range.
- Bitcoin’s 12-month profit/loss ratio currently stands at -18%, while its market dominance index (DI) lies at 40.1%.
Bitcoin (BTC) has exhibited a relatively high level of financial stability over the last 48 hours despite prevailing economic factors suggesting otherwise. The digital asset rose to a high of $39,851 before showcasing a significant correction shortly afterward. At press time, BTC is trading at $43,636.
While Bitcoin recently had slipped as low as $34,300 in light of Russia’s ongoing invasion of Ukraine around a fortnight ago, the crypto has held ground and maintained a relatively high level of price integrity ever since.
On the matter, independent crypto analyst Pentoshi noted that the cryptocurrency seems to have found a “short to mid-term bottom” around the $38K range, but macro factors still remain extremely bearish. He further added that for Bitcoin to really break out of its ongoing rut, it needs to cleanly break past the $41.5K resistance in the near term.
From a geopolitical standpoint, more uncertainty has plagued markets across the board, especially as a growing forum of Western countries begin to impose sanctions against Russia. For example, the European Union, US, UK, Japan, Canada, Taiwan and New Zealand have all taken potent steps to cut off Russian banks from gaining access to offshore liquidity as well as making use of the SWIFT payment system.
Also, a mention of possible nuclear deployment by president Vladimir Putin over the weekend has sent the global economy into a tailspin. However, with Ukraine’s emissaries meeting with their Russian counterparts as part of a series of ongoing peace negotiations this week in Belarus, it remains to be seen how this ugly scenario plays out.
Can anti-Russia sanctions help Bitcoin?
In light of Russia being barred from using various mainstream financial channels, some experts have begun to advocate the use of Bitcoin as a neutral medium for transferring value. Ukraine has already started accepting donations — via Bitcoin, Ethereum and Tether — to sponsor its ongoing military efforts against Russia.
Since launching its campaign, Ukraine’s crypto wallets have mustered over 112 BTC, 2,000 ETH and $1 million worth of USDT. Providing his take on the matter, former Coinbase CTO Balaji Srinivasan said:
“Still processing the implications. This is a financial neutron bomb. Bankrupts people without blowing up buildings. Hits all 145M Russians at once, every ruble holder. In a maximalist scenario, possible collapse of the Russian economy.”
Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.
