There has been a successful cross of over $2 trillion of the crypto market capitalization for the first time in more than two weeks. This new feat was dominantly aided by speculations that there is growing adoption of cryptocurrencies by Russians in response to Western sanctions on the country for its war in Ukraine.
Russia-Ukraine War Encourages Adoption of Cryptocurrencies
Though they have been predominantly inconclusive, early stages of mediated talks between Russia and Ukraine have given some hope and optimism to market players and have helped Bitcoin to stretch its recovery effort beyond $42000, which is a major resistance zone. As a lot of other altcoins equally rallied up, Bitcoin’s dominant market position remains unchallenged at its 42% height.
Several indexes are showing that sentiments over Bitcoin fears have been improving from a state of absolute fear to a level of neutrality.
Other crypto assets have also witnessed a leap in their popularity as a result of the ongoing war, with both sides having increased adoption rates. Ukrainians have been reportedly turning to stablecoins and paying high costs for tokens following the central bank’s suspension of electronic cash transfers in the country.
Russians, on the other hand, are turning largely to Bitcoin after stringent Western sanctions have set the ruble on the course of a free fall. There are also widely circulated speculations that the government of the country is using crypto assets to go around the barrage of sanctions.
However, both countries have been huge grounds for the usage of cryptocurrencies long before the conflict began. There are laws in Russia and Ukraine that give adequate recognition to the crypto space to a considerable degree.
Naeem Aslam, the Chief Market Analyst at Avatrade, said that the overall crypto community thinks that Bitcoin is going to be the alternative and is set to be the ultimate global currency. He said further that the price of Bitcoin has successfully crossed over the important price benchmark of $40000, and all eyes are now focused on the next threshold resistance zone at $64000.
Bitcoin Sells Better than Stocks
The rally around Bitcoin since last Wednesday when it got started on this trajectory of recovery trade has given a wide margin between the coin and traditional stocks. Bitcoin is high by almost 14%, whereas, at the same time, the S&P 500 Futures added only some 0.9%. Nasdaq, which is about a close parallel to Bitcoin, is up by 2.4%.
It is unknown if the momentum will be sustained. The conflict between Russia and Ukraine is not showing any signs of abating as fighting still spreads across several parts of Ukraine.