As is the case in the global stock markets, Bitcoin witnessed strong losses, after the drums of the Russian-Ukrainian war sounded last Thursday, and covered in red for 3 days before reversing its direction with a huge jump, bringing it back near the levels of 45 thousand dollars, as are the huge gains in oil prices. and minerals, what happens and what are the similarities and comparisons?? What is the next for the gold digital currency??
Today, the argument that Bitcoin represents digital gold as a safe haven in times of political turmoil has come true, and may have seemed more in line with the volatility in traditional markets such as stocks, which have taken the same downward path with the Dow Jones and Standard & Poor's indexes down about 10% each since the beginning of the year. The current crisis, and then to rise again, as gold did as a safe haven at the time of the current crisis, so that Bitcoin rose more than 20% during the past few days, and perhaps helped in the rise of the Bitcoin currency, the United States imposed more sanctions on Russia during the weekend targeting the Russian Central Bank, in addition to Previous sanctions targeting other financial institutions and Russian sovereign debt, in an attempt to isolate Moscow from the global financial system.
The same is true for Ethereum, the second largest cryptocurrency by market value, which has also risen by more than 12% over the past month, exceeding the $3,000 threshold, yet cryptocurrencies have been in the red since the beginning of the year, with Bitcoin losses amounting to 5% in 2022. So far, Ethereum is also down nearly 20%, but the gains of recent days, and Bitcoin's trend to the $45,000 level, opens the way back to the $50,000 levels again, which it last recorded in late December.
* Bitcoin performance since the beginning of 2021
In addition to the fact that the recent drop was certainly an opportunity to buy, which was indicated in more than one recommendation and tweet from the levels of 38-34 thousand, and this current trend of buying was supported by the attempts of the Russians to use cryptocurrencies to evade the sanctions imposed by the United States on financial institutions, as well as the attempt of the Ukrainians And the Russians are taking their money out of the country, with Bitcoin being a borderless currency and not governed by any financial system.
Since the Russian invasion began last Thursday, transactions on central bitcoin exchanges using the Russian ruble have jumped to the highest level since last May, and trading volumes in the Ukrainian hryvnia have increased to a level seen since October, according to data from cryptocurrency company Kaiko.
What is happening now on the geopolitical scene brings us to an important point that the emerging cryptocurrency 12 years ago, did not have the opportunity to show its importance in such a political environment witnessing a war, highlighting the role that crypto assets can play in any global military conflict, Whether to evade sanctions or fundraise as the Ukrainian government has done and raised tens of millions of dollars through cryptocurrencies such as Ethereum and Bitcoin.
And perhaps the most important question, will cryptocurrencies continue to be a lifeline for Russian billionaires to avoid sanctions?? Or, is this matched by strict procedures from the regulatory authorities? Already the US administration has called on cryptocurrency exchanges to comply with the sanctions that it imposed on Russian individuals and entities, and we do not rule out that the European Union will also speed up regulation of crypto laws so that Bitcoin and its companions cannot be used as an alternative to sanctions
Here, ladies and gentlemen, we return to the basic idea and spirit of digital currencies in financial independence, and after their global spread, I think that they will represent an unattainable challenge to surround them politically with submission, although the regulation in its general form benefits and does not harm, but does not prevent or limit
At the end of all of the above, it is necessary to shed light on the technical movement of Bitcoin, the ardent leader and ruler by his order in the Altz markets, and it is now at the level of 44 thousand dollars.
As previously mentioned, I believe that Bitcoin has the ability to return above 50 thousand dollars over the next few days to target the price area between 52,500 and 55,500 thousand dollars, which I think may represent a third bull trap that will be set, and therefore I advise my friends to be careful and start profit-taking operations. Or at a minimum, liberating liquidity in anticipation of the return of the descending path, which I think will return us to the expected collection range between the level of 27,500 and 23,500 dollars.
I hope that we have awareness and the ability to realize what is happening on the social media pages, as it is currently shameful and certainly deceives new investors. Watch carefully that with every rise, the majority of pens tend to be unbridled optimism, and there are those who really started talking about a new historical peak for Bitcoin and a rise above 100 thousand, and also the same Those pens, with each drop, were talking about abyssal numbers below 15 and 10 thousand for Bitcoin, while we always have different attitudes to what is written and rumored, and perhaps contradicts it, and we bear for that scrutiny and condemnation.
I simply say it to everyone, no to optimism and drumming, no to pessimism and intimidation, and only yes to realism
Best wishes to all friends
Iyad Abu Aref
Founder of the Namazon website
