Bitcoin jumped up 13% on Tuesday, continuing its strong recovery, as the Russian invasion of Ukraine continues and the US increases sanctions, according to CNBC.
The cryptocurrency rose more than 13% to $ 43,500.16 earlier today, after hitting the last 24 hours at $ 44,165.90, according to data from CoinDesk. At this time, according to investing.com, the bitcoin has risen 12.40% in the last 24 hours to $ 43,112.
This rally comes after the fall of cryptocurrencies last week, after the sell-off in the markets in the wake of the Russian invasion of Ukraine.
The Ethereum has risen 9.87% in the last 24 hours to $ 2,882.33.
Proponents of bitcoin have touted the cryptocurrency as “digital gold”, an asset that provides a safe haven for investors in times of turmoil or even as a potential hedge against inflation. But bitcoin has not paid off that way. On the contrary, it has been more closely linked to stock movements, even as inflation remains high for years and amid war between Russia and Ukraine. This case for bitcoin as “digital gold” has begun to decline in recent weeks.
Vijay Ayyar, a senior executive at the Luno cryptocurrency exchange, said that could change that.
“People have donated cryptocurrencies to the Ukrainian army,” proving that cryptocurrencies are a technology that can not be ignored, “Ayyar added.
Michael Rinko, a senior executive at AscendEx, told CNBC that $ 38,000 was a key level for bitcoin.
“More people bought at $ 38,000 than at any other level,” he said.
The Bitcoin rally comes as the US imposes further sanctions on Russia. Washington has targeted Russia’s central bank, effectively barring Americans from doing business with the bank.
In addition, sanctions have been imposed on oligarchs and Russia’s public debt, as well as the country’s cut-off from the global financial system.
There is debate as to whether bitcoin, which is not owned or issued by a single authority such as a central bank, could be used by Russia to circumvent sanctions. But the amount of money Russia would need to convert to and from bitcoin may be too much, according to Ari Redbord, a senior TRM Labs executive.
“You will see Russia trying to circumvent the US financial system by turning to cryptocurrencies,” Redbord said.
On Sunday, Deputy Prime Minister of Ukraine Mykhailo Fedorov called on the largest cryptocurrency exchanges to block the addresses of Russian users.
Binance, the world’s largest exchange, has said it will freeze the accounts of any Russian on the sanctions list, but will not “unilaterally” block the accounts of all Russian users.
Other cryptocurrency exchanges have taken a similar stance.
Source: Capital
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