In the past few days, many countries such as the United States and Europe have continued to increase economic sanctions against Russia, and Russia's economic counter-sanctions have also been continuously strengthened.
On February 26th, the White House of the United States issued a joint statement that it will join European countries to impose financial sanctions on Russia, including removing some Russian banks from the SWIFT system and restricting the Russian central bank from placing international reserves. On March 2nd, Russian President Vladimir Putin signed a presidential decree aimed at stabilizing the Russian financial market. According to this order, from March 2nd, citizens are prohibited from carrying foreign currency, cash or payment instruments of the equivalent value of more than 10,000 US dollars. out of the country.
It is obvious that the financial "confrontation" between the United States and Europe and other Western countries and Russia is constantly intensifying. The ongoing conflict between Russia and Ukraine has not only brought the financial systems of the two countries to the brink of collapse, but the world economic system has also been greatly conflicted.
Driven by this series of financial backgrounds, global risk aversion pushed the price of gold higher, which was running around $1,915 an ounce, with a cumulative increase of nearly 5% during the year. Some investors believe that gold is an efficient safe-haven asset that can help investors hedge against tail risk events. At the same time, Bitcoin is also favored by market funds as an emerging safe-haven asset. The latest data shows that $260 billion has poured into cryptocurrencies in a single week. Among them, the Ukrainian hryvnia transaction volume and the number of Russian users hit record highs.
According to Coinbetter’s market data, the price of bitcoin soared from $35,000 to $44,000, and is now back around $42,381.
Coinbetter experts believe that it is precisely because of the frenzied buying in a short period of time by Ukrainians and Russians under geopolitical conflict and financial sanctions that the price has risen. Because of the uncertainty of the external environment, both parties and individuals, companies and even government agencies around the world are looking for targets that can replace traditional assets, and cryptocurrencies led by Bitcoin are becoming more and more attractive to investors.
A few days ago, Barry Silbert, founder of Grayscale’s parent company Digital Currency Group (DCG), tweeted that Bitcoin looks good and we are buying.
All of the above points to Coinbetter's speculation that the acceptance of cryptocurrencies around the world will reach a peak.
As JPMorgan pointed out in a note on March 2nd, the cryptocurrency market has more upside ahead as inflows into the stablecoin market have surged over the past week. Morgan emphasized that stablecoins’ market share in the overall cryptocurrency market has soared to an all-time high of about 10 percent, which means there will be more upside for the general cryptocurrency market, as stablecoins are “often used as fiat to crypto. The initial tool for currency conversion".
Although under various circumstances such as tightening monetary policy, geopolitical tension, and intensified economic sanctions, the crypto market around the world will suffer a setback to varying degrees, and a short-term downturn is inevitable, but in the past few days, Bitcoin’s ability to hedge against catastrophic events has surpassed other cryptocurrencies, and its share of the entire cryptocurrency market has risen to 43%.
Of course, Coinbetter still maintains a developmental perspective on Bitcoin's anti-risk capabilities. The emergence of Bitcoin has provided global investors with a new type of global safe-haven asset, and the excellent performance of the short-term market has proved its long-term strong vitality and growing global consensus. This will qualitatively improve Bitcoin's hedging ability against catastrophic events.
Finally, Coinbetter also reminds users that there are risks in the market, the uncertainty of the external environment continues to increase, and investment needs to be rational.
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