Reasons for yesterday’s bitcoin jump; How did the war raise prices?



On Monday, the market for bitcoin and other digital currencies jumped significantly. This trend, which continued on Tuesday, remains almost unchanged so far. Many analysts now believe that the main reason for the jump in prices over the past two days is the strong acceptance of digital currencies by Russian and Ukrainian investors.

According to Kevin Desk, while Russian forces are stepping up their efforts to gain more control over Ukraine, the Bitcoin Atrium and other major currencies in the market have managed to maintain their profits over the past two days.

On Tuesday, a 64-kilometer convoy of the Russian army, consisting of several armored vehicles, tanks and artillery towers, left for the Ukrainian capital Kyiv. Kyiv and Kharkiv, Ukraine’s second-largest city, came under intense Russian rocket fire during that period, with approximately half a million people leaving the country so far, including foreign students working in Ukraine.

The price performance of digital currencies during these few days has clearly deviated from the global stock market; Especially stocks of companies in which investing can be very risky. The S&P 500 and Nasdaq (NASDAQ) have fallen 1.6% and 1.5% respectively in the last 24 hours. Some analysts believe that the conflict between Russia and Ukraine has made the use of digital currencies more noticeable to investors.

According to the latest estimates of Forklog, a Russian-language media active in the field of digital currency, all institutions that have raised funds for Ukraine since the beginning of the war have raised a total of more than $ 58 million in digital currency over the past six days. The Arcane Research Institute also wrote in its report on Tuesday that the Ukrainian people “have bought more digital currency during this period than ever before”; A purchase that has been largely influenced by public fears of the collapse of the country’s banking system.

On the other side of the conflict, the Russian people are somehow resorting to digital currencies to escape the economic pressures of EU and US sanctions. “Trading volumes in markets ending in the ruble, Russia’s national currency, have risen sharply, with Tetra and bitcoin being more popular than other digital currencies,” Arkan Research said in a report. Analysts at Arkan Research believe that “the Russians intend to convert their capital into dollars by buying stable coins before the start of possible sanctions against traders in digital currency in the country.” As a result, it can be said that “these Russian traders in the market want to get rid of their rubles.”

At the time of writing, each bitcoin is trading at about $ 43,900, and the price has risen 1.37% in the last 24 hours. Atrium fluctuates very close to the level of $ 3000 and the price has increased by 2% since yesterday. Among the 20 best currencies on the market, the price trend of most altcoins has increased in the last 24 hours, while LUNA and Solana have grown by more than 5%.

Reasons for yesterday's bitcoin jump;  How did the war raise prices?
Map of the digital currency market on arz.watch

Arkan Research said:

Investors believe that in this context, with growing concerns about the Russia-Ukraine conflict, the non-political nature of digital currencies and their reliance on trust will become even more important.

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