Crypto (unsplash photo)
The digital currency market has been boiling for the past day. Bitcoin, which is currently priced at $ 43,800, completed a 14 percent increase in the last twenty-four hours, thus erasing the declines of the past week almost completely. Assaf Elmaleh, a senior crypto-financial analyst at Proxibit Investment House, analyzes what led to the meteoric rise.
According to him, the reason for the sharp rise seems to be due to a jump in activity in the Bitcoin currency, against the background of the war in Ukraine and the economic sanctions on Russia and the expectation of investors around the world that this trend, of the jump in activity, will continue. Research companies in the field of digital currencies provide data indicating a sharp increase in the volume of bitcoin shortages against the ruble, in recent days the trading volume broke a record nine-month high – 1.5 billion rubles on Thursday alone.
More in-
With the necessary caution it has been said that this increase in value may indicate an increasing attitude of investors towards Bitcoin as an asset for value preservation, especially in crisis situations. However, the path of bitcoin to becoming “digital gold” is still a long one. The Russian ruble also traded against the USDT – the stable currency pegged to the dollar, recorded a sharp rise in the volumes of the deficit and reached a peak of 8 months.
Stable digital currencies are currencies that aim to be worth the dollar at any given moment and do so by backing up the digital currencies in real dollars and various assets. The stable currencies are undoubtedly stars in this period – they are easy to use and maintain their value. A complete ecosystem of digital currencies linked to political currencies – the LUNA currency that drives this ecosystem has jumped no less than 80% in the last week.
According to him: “The value of the Russian ruble depreciated close to 40% on the last trading day, indicates what is known to many around the world: At a time of uncertainty and a combination of rising inflation, money loses its power – and Russian investors seem to be looking for alternatives. “The warring parties are trying to take advantage of digital currencies: on the one hand, Russian oligarchs are exploiting the power of digital currencies as easily transferable assets internationally for the purpose of evading economic sanctions.”
“On the other hand, Ukraine is harnessing the power of digital currencies and posting an ad on the country’s official Twitter account listing the wallets to which donations can be transferred – it has raised no less than $ 10 million in 24 hours.
Bottom line – expect high volatility in the coming weeks – global events create a layer of uncertainty that will undoubtedly be interpreted in the digital currency market as well.
Comments on the article(0):
Your response has been received and will be published subject to system policies.
Thanks.
For a new response
Your response was not sent due to a communication problem, please try again.
Return to comment