Bitcoin Runs Into a Brick Wall With Russia’s Regulations
High tensions and looming laws in Europe are taking the wind out of the sails of cryptocurrency worldwide. Is Bitcoin a safe haven asset? With the current crisis going on between Russia and Ukraine, will Russia emerge as a crypto superpower?
The answer to the former is a solid ‘No.’ The truth is over the past few days, the “Almighty” gold has risen 2.3%, Russian aggression towards Ukraine seems to have intensified, and Bitcoin has lost 3% worth of its value.
All of the above happens to be worse than the 0.9% decline of the Nasdaq Composite index. The head of research at Melbourne-based brokerage Pepperstone, Chris Weston, said in an interview that he sees no evidence of Bitcoin being a safe haven for crypto assets. He went on to say that the situation between Russia and Ukraine makes it a really “hard one to price.” In that situation, it is better to buy crude futures and assets.
Of course, it is definitely too early to dismiss the argument made by many Bitcoin enthusiasts on cryptocurrency. They go with the opinion that the cryptocurrency that has just reached its teen years is destined to be a form of digital gold that should retain its value when the current assets giants such as stocks, crumble.
The Current Reality Of Bitcoin
Although Bitcoin seems to have climbed a few steps in the positive direction, to now trade at $42,000, it still hasn’t surrendered all of its gains made from its lowest if lows when it hit $32,000 on the 24th of January 2022.
Many investors are also pointing to how calm the recent trading activities have been and have attributed this ‘calm’ to the high geopolitical tension between the Russian and Ukrainian governments.
Russia – having amassed a total of about 100,000 troops near Ukrainian territory – once described the Western prophecies of invasion as “hysteria.”
Bitcoin, the largest cryptocurrency in the world, recorded a 30-day average volatility decline by 3.48%, compared to itsלא 2021 average of 4.84% according to Cointelegraph volatility index.
The renowned cryptocurrency data platform Coinglass, has put forth its Fear and Greed index which measures market sentiments. When the measurement indicates 0, it is termed extreme fear as investors activities are very low due to fear of the market’s instability. When the measurement indicates 100, it is termed extreme greed as a lot of investors are trading in the cryptocurrency industry with huge gains expectations.
The Fear and Greed index currently stands at 46 above the nervy 11-13 range, where it had been trading since last November.
The Future Of Bitcoin And Crypto Super Powers
The chief executive officer of a Singapore-based crypto platform Stack Funds, Matthew Dibb, said he was expecting the cryptocurrency to go bullish as an alternative asset and as a hedge to world events. But that is not the look of things.
He went on to say that he is beginning to see some discorrelation and the equities market which is very nice. He also said that it is true that some traditional safe havens are popping off here and there with the Ukraine and Russia situation, we haven’t really seen that as regards cryptocurrencies.
Furthermore, a new law for crypto assets is expected to be announced in Russia this week. This announcement could potentially shape the global scene as regards Bitcoin and other digital assets.
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