The price of bitcoin and other digital currencies rose slightly yesterday after US President Joe Biden officially announced that he had tightened sanctions against Russia. However, experts now disagree on the implications for the digital currency market.
Bitcoin, which fell to nearly $ 36,000 yesterday, is now hovering close to $ 38,000, according to Quinn Desk. The price position is almost unchanged for most of yesterday.
Biden said yesterday for the first time during a press conference that he considered the movement of Russian troops to separatist regions in eastern Ukraine an “invasion.” The Biden administration’s sanctions against Russia are effectively destroying its financial ties with the West.
After Putin announced he was sending troops to separatist areas of Donetsk and Johannesk to “keep the peace” in the region, Biden issued an executive order Monday to impose new sanctions on Russia. However, the sanctions mentioned during Tuesday’s press conference are even tougher than before.
Biden also said he planned to deploy more troops and equipment to the Baltic states and Poland.
Bitcoin investors, like other financial market participants, are watching tensions between Russia and Ukraine. NATO Secretary-General Ban Ki-moon has said Russia is preparing for a full-scale offensive, while experts disagree on the long-term and short-term consequences of the conflict.
Last week, the price of bitcoin fell below $ 40,000 for the first time since January 21. This makes traders wonder how Russia’s increased military presence in Ukraine will affect the digital currency market.
Jason Dean, an analyst at Quantum Economics, said:
For people like me, whose main focus is on long-term investing and who collect bitcoins in their accounts on a daily basis, this digital currency is an asset that creates more security and value for them than anything else. For short-term and seasonal market traders, on the other hand, investing in bitcoin is simply an equation whose main purpose is to raise more money than Fiat (making money). For this group of people, investing in bitcoin is an exciting and, of course, risky transaction. In fact, the main question is which of these two groups pursued a stronger policy?
So far, however, bitcoin has not functioned as expected as a tool to fight inflation.
Alex Kupcikevich, a senior analyst at FxPro, said:
Bitcoin is again approaching $ 35,000 support; The same level at which buyers became active last month. Given the changing macroeconomic conditions, will bitcoin again be attractive to buyers in this price range?
Kopetsikovich believes that fundamental factors drive the long-term growth of bitcoin and that the market is growing stronger as tensions between Russia and the West ease.
Don Kaufman, an analyst at TheoTrade, said the escalation of US sanctions against Russia could lead to higher bitcoin prices in the future; Because then Russia will use digital currencies to counter sanctions.
Edward Moya, an analyst at Oanda, also said in this regard:
Bitcoin may experience another massive collapse before long-term investor confidence enters the market.
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