The modern world is now experiencing a rather powerful shock, which has already affected many aspects of human life. Cutting off Russia from many elements of supplies and the global financial system leads to the fact that many European countries and the United States begin to feel higher prices and slight inflation. Alex Mashinsky, CEO of Celsius Network, says that this could draw the global community’s attention to the crypto industry, significantly affecting the value of Bitcoin and Ethereum.
How does the price of bitcoin change?
On the first day of the military conflict between Russia and Ukraine (February 24), Bitcoin fell by 9% and Ethereum by 14%. It is noted that these events also greatly influenced the value of other cryptocurrencies.
Previously, there was an opinion that political, military, and social spheres cannot influence the crypto world, but everything turned out to be a little different in practice. It is worth noting that well-known currencies recovered quickly, and their stable growth is now noticeable. Some experts argue that this trend will continue.
What are the prerequisites for a sharp increase in the price of Bitcoin?
The aggressive actions of Russia against Ukraine led to the fact that European countries, the United States, and Japan imposed quite significant sanctions, including disconnecting some Russian banks from the SWIFT system and some countries imposing an oil embargo. It significantly crippled the Russian economy and certainly hurt many countries worldwide.
Alex Mashinsky argues that the US authorities are now artificially holding the dollar to prevent a sharp rise in prices in the country. It leads to the fact that many owners of capital are looking for an opportunity to protect their assets. Business people understand that the situation may change dramatically shortly, and it is necessary to look for an industry that will not depend on political processes.
According to many crypto experts, including Jiang Zhuoer, CEO of the BTC.TOP pool, he is sure that blocking Russia in the world market can positively affect cryptocurrencies. So, the more people invest their savings in it, the more it strengthens and develops faster.
Cryptocurrency can become a convenient tool for circumventing sanctions and continuing trade with Russia. So, those companies that want to receive goods and services from the Russian Federation can carry out financial growth in bitcoins or Ethereum. It is worth noting that some have already begun this process. So, for example, Navalny Live appositional YouTube channel asks to make charitable contributions to the Patreon through crypto-wallets. And we can find millions of such examples all over the country.
But interest in cryptocurrencies will grow not only in isolated Russia but also throughout the world. It is expected that millions of people worldwide will start buying Bitcoins, Ethereum, and other cryptocurrencies in a short period. It can lead to a rather sharp rise in prices. If many world countries do not change their policies, then in 2022, we can observe the price of Bitcoin to more than 100 thousand US dollars.
Such a massive increase in prices will be because demand will significantly exceed the market’s capacity. There will be so many people who want to buy coins that most crypto exchanges will not be able to cope with such a flow of people.
Of course, such forecasts are very contradictory, especially against the background of how Bitcoin lost a lot on the first day of the war. Still, it is relatively high that this currency may significantly increase in value and break all unthinkable records. The sooner Russia ends the aggression against Ukraine and pays all reparations, the sooner the global financial system will return to normal.