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“Bitcoin is up 35 % since Russia entered Ukraine.” This was explained by cryptocurrency expert Will Clemente, who detailed that it is difficult to be an investor while the prices of the virtual currency remain so high.
“Bitcoin has closed above short term holder cost basis for the first time since December 3rd,” Clemente detailed on Twitter.
Bitcoin traded at midday Monday at $47,537, up 6.40% on the day and 15.97% over the past week, with a total market cap of $903 billion. According to Finbold media records, on February 24 (the day the invasion began), the currency had fallen to a low of $33,727.
Bloomberg analyst Mike McGlone said the cryptocurrency is showing what he called “divergent strength” and explained that it is a risk asset that is coping well with the situation in Ukraine.
“Taking Risk-Off Baton? 1Q may be just another blip in the trend of rising risk assets amid the highest inflation in 40 years and war in Europe, yet our bias is that the 2022 endgame isn’t likely to be that easy. Bitcoin is showing divergent strength,” McGlone highlighted.
Bitcoin and other cryptocurrencies during wartime
Finbold, a specialized crypto media outlet, indicated that “bitcoin’s inflation rate has gone down to 1.7% and is now five times lower than that of the United States dollar (USD), positioning the popular cryptocurrency as a potential defense against inflation.”
During the war in Europe, Bitcoin has been used as a way to get around financial difficulties. An article published by El American details that cryptocurrencies have played a historic role during the invasion of Russia.
For example, in early March, Ukrainian President Volodymyr Zelensky signed the Law On Virtual Assets, which legalizes the use of cryptoassets. “The signing of this law by the president is another important step in bringing the cryptocurrency sector out of the shadows and launching a legal market of virtual assets in Ukraine,” the Ukrainian Ministry of Digital Transformation wrote in a statement.