London, UK, 03/08/2022 / London News Desk /
The currency devaluation in the countries after the Russian invasion of Ukraine increased the demand for digital assets across the globe, especially in Russia. In Russia, Ruble historically observed its devaluation due to the West’s sanctions. Bitcoin demand saw an upsurge as Russian people were keen to save their assets in the form of Cryptocurrency. Bitcoin jumped 14.5% on Monday in its best day in a year and now stands up 12% since the day before the invasion began on Feb 24.
“It’s still largely been correlated with US equities throughout this crisis,” Joseph Edwards, head of financial strategy at crypto firm Solrise Group, said of bitcoin.
Crypto analysts highlighted the importance of bitcoin, calling it ‘Digital Gold.’ It is the best place in the eyes of crypto traders, especially during war crises and financial dropdowns. Bitcoin has a limited supply and operates through algorithms without government intervention. Algorithms regulate the value of Bitcoin according to supply and demand. But investment in digital assets is not easy as they have a volatile nature. But it outperformed the other assets in the current situation. Investors say that bitcoin’s characteristics have stoked demand during the war and helped it outperform other traditional havens. Gold is up 2.6%, while the US 10-year Treasury yield has fallen 8.7% since last Wednesday. Gold and oil markets saw a slight hike slightly, but digital assets occupied their first place in the investment market.
“We don’t think BTC is being viewed as a safe haven, nor should be, but instead its appeal is it’s a supply capped, credit free, digital bearer asset that is proving to be a viable alternative to traditional finance in this current environment,” said Richard Usher at crypto firm BCB Group. If the condition continues to deteriorate, markets will see a downfall, but digital assets will outclass other assets.
The sanctions on Russia after the invasion increased the demand for Bitcoin. The Russian currency, Ruble, was battered by the West to pressure the Moscow economy, pushing them to withdraw the military from Ukraine. The financial and banking systems faced sanctions over the transactions systems, making it ineffective for trade. Trading volumes between the Ruble and major cryptocurrencies hit 15.3 billion Rubles ($140.7 million) on Monday, a three-fold jump from a week earlier, according to researcher CryptoCompare.
The most important thing is that the current war event cleared all theories related to the resistance of Bitcoin against the geopolitical tensions. War crisis will affect the value of digital assets as people are keener to save money in the form of Cryptocurrency.
The war has contributed to the narrative that bitcoin “is not just a speculative asset, it is also a seizure-resistant, policy-independent, longer-term store of value,” said Noelle Acheson, Head of Market Insights at New York-based Genesis.
Source:
https://tribune.com.pk/story/2346510/cryptocurrencies-in-a-time-of-war
Source: NewsService
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