Amid ongoing issues between Russia and Ukraine, Bitcoin has taken a major hit in the past few days. The digital asset crashed from $40,000 to as low as $34,000 in the last 7 days. However, BTC investors shrugged off global economic uncertainties on 25 February after Bitcoin saw a jump of approximately 10%.
With the recent spike, Bitcoin touched $39,000 on Friday for the first time since 21 February. The most valuable cryptocurrency has added more than $50 billion to its market cap in the last 24 hours. Ethereum, Cardano and XRP gained more than 10% within a single day.
Crypto asset Terra (LUNA) has remained the best-performing digital currency among the top 10 digital assets since yesterday with astonishing gains of more than 25%. LUNA’s market capitalization crossed $24 billion on 25 February.
“For a long time, gold (and a few fiat currencies such as USD and CHF) was the 'safe haven' for investors to flock to during periods of crisis. And, with the emergence of Bitcoin, over the last decade, in particular, there is increasing hope that cryptocurrency will be able to carve its own path (Bitcoin, in particular) to make its claim as a safe haven of its own,” Santiment mentioned in its recent report.
Crypto Volatility
Due to the recent uncertainties in the global economy, the crypto market lost almost $200 billion. As a result of the volatility across the digital asset market, liquidations of long and short crypto trading positions surged substantially.
“Some have speculated that Russia might use Bitcoin to evade Western sanctions. This could be very negative for the general perception of cryptocurrency as it would give Western governments more legitimacy to crack down on digital assets. Canadian Prime Minister Justin Trudeau has ended the national state of emergency which saw an unprecedented crackdown on bank accounts and an attempt at cracking down on crypto wallets,” Jonas Luethy, Sales Trader at GlobalBlock, said.
