The geopolitical tensions happening recently made analysts believe that bitcoins value would fall. However, bitcoin rises despite geopolitical tensions. Today’s article will go over geopolitical tensions’ effects on bitcoin.
According to the Wall Street Journal, Russian and Ukrainian negotiators have talked and will continue for the upcoming days. However, ceasefire as of now has not been the topic of discussion. Meanwhile, the United States and numerous European countries have further sanctions on Russia. On Monday, for example, the United States Treasury Department prohibited transactions with the Central Bank of Russia and sanctioned a key Russian sovereign wealth fund.
According to Kaiko statistics, trade volumes between the Russian ruble and bitcoin reached a nine-month high in crypto marketplaces. One Ukrainian official reacted angrily to the growth in ruble-denominated bitcoin volume. The geopolitical tensions effect on bitcoin in this scenario are due to the Russian Ukrainian conflict.
In addition, the vice prime minister of Ukraine is requesting all major crypto exchanges to block Russian users. He tweeted on Sunday, “Its crucial to freeze not only the addresses linked to Russian and Belarusian politicians but also to sabotage ordinary users.”
After the spike on Feb 24th, bitcoins trading volume and its selling pressure have declined. Let’s rewind a little before the Russia, Ukraine conflict. After bitcoins high in November, it reached close to $69,000, it has been in a downtrend mode. That means any global monetary tightening, low crypto demand from China, and various other occurrences have affected bitcoin’s price. Despite all of the geopolitical tensions, its effect on Bitcoin is seen. However, Bitcoin’s value always goes back up, even after a downtrend.