With all Russian-Ukraine geopolitical conflict over, Bitcoin will thrive as a bullish market.
“The last time BTC performed a weekly close below the ~$43,100 level, the price rejected to the ~$38,000 area for a retest. Upon weekly close ~$43,100, BTC may be positioning itself for a similar price trajectory,” said pseudonymous strategist Rekt Capital.
He further added that BTC might be trading within a symmetrical triangle. This may result in wild price swings when the pattern hits its narrowest point. There is a massive possibility that BTC will keep pulling back yet remains bullish for as long as it retains its position above the critical area.
Meanwhile, Bill Miller, a known seasoned multi-billionaire investor, stated that he strongly believes that the current status of crypto will remain positive. The said investor adores Bitcoin in terms of digital currency.
He even referred to other cryptos as ‘adventure investments’ because they mostly lack the uniqueness of the BTC. As a fund manager, he featured that roughly half of Russia’s reserves are held in currencies. These are being controlled by people who are looking forward to destroying them.
Furthermore, the renowned value investor revealed that he possessed a ‘substantial’ BTC. He even pertained to it as a hedge against inflation and our insurance against financial risks.
With his background in the stock market and investment, this billionaire is also aware of risks in the stock market. One of the main disadvantages of this market is that people do not buy it because they believe in it, but instead they speculate more on its value.
After invading Ukraine, several countries imposed their sanctions on Russia.
With that, several Russian companies listed from other nations plummeted. In fact, President Ursula von der Leyen of the European Commission released a statement that they would be paralyzing the central bank’s assets.
Such action will freeze any transactions, preventing them from liquidating their assets on their Russian central bank.
“If you look at Russia right now, Russia has 16% of their $640 billion of reserves in dollars. They have 32% in euros. So they have almost 50% of their reserves in currencies that are controlled by people who want to do them harm,” Miller explains.
How Is Bitcoin Affected By This News?
Cryptocurrencies are affected by all types of news. For example, when people grow suspicious about economic and political events, the value of altcoins goes up.
In addition, Bitcoin and other distributed money (DMS) are technically not connected to any country. They are decentralized and operate without a central authority. In addition, governments cannot hence maintain control over their holdings or any potential growth or decline in their value in the future.
Bitcoin’s strength can also be seen from its price decrease and rise in prices when there is an international crisis such as war. Moreover, it has been found that Bitcoin is greatly influenced by news on laws and regulations imposed on their trading. When an official government agency makes a statement about the use of BTC, the price of BTC increases or decreases dramatically.
In addition, countries like Japan that recognize Bitcoin as a legal payment method experienced a vast increase in demand for BTC, which eventually increased its price.
Response on BTC as a store of value
No one can dictate what you can do with your BTC. However, it is crucial to know that the value of your BTC is affected by several factors, including supply and demand.
Others are selling their BTC to those who are willing to buy BTC in the hopes of getting more profit. This is one of the main reasons why a general price increase is experienced in this market.
In March 2019, research was conducted by the University of Sydney and three other institutions into how cryptocurrency was being used as a store of value.
Cryptocurrencies were first invented to function as a form of payment. However, due to several reasons, such as transaction fees and long transaction time, Bitcoin has become an ideal store of value instead of just being a medium for exchange or payment. To date, Bitcoin has the largest market share.
There will be risks in investing. This should not, however, scare you away from trading BTC. On the flip side, if you are willing to accept the risks, you will earn a considerable profit. Always keep in mind that just like the stock market, investing in Bitcoin is a rollercoaster ride. Learn how to manage your finances and weigh in carefully your option.
With that said, it is only wise to monitor things closely and take the necessary actions available to protect your money from going down the drain due to an unexpected event and other unforeseen circumstances. Cover your bases at all costs – that’s the thing.