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Bitcoin’s value is hovering between US$37k and US$40k and might find a stable value at US$50k.
Bitcoin has been going through a tumultuous phase for the last couple of weeks. After plunging down to US$32,000, Bitcoin’s price found its way to US$50,000. BTC is trying to hold the ground amidst geopolitical tensions and the consequential war-imposed macro weaknesses. Irrespective of the turbulence in the financial markets, Bitcoin still holds the hope of breaking through US$50K in the coming weeks. In other words, this Cryptocurrency is in a do-or-die situation, as it is equally vulnerable to market uncertainty.
Like any other, trading stock, Bitcoin’s price should be affected by a combination of factors like supply and demand, institutional adoption, feature addition, etc. But recently its price has been fluctuating because of geopolitical happenings across the globe. BTC’s price swing due to the war situation is not a new phenomenon except that its volatility is more intense amid the Russia-Ukraine war. In addition to war-induced instability in the global financial system, the increase in usage of cryptocurrency by Russia and Ukraine to bypass western sanctions is responsible for its volatility. According to a recent Bitcoin price analysis, Bitcoin is stable at US$37,000-US$40,000, from where it can pick up some value.
Can Support Level Boost its value?
As mentioned above, Bitcoin has found a support level between US$37k and US$40k to stabilize the future outcomes. However, resistance at US$46,700 remains in tack. Currently, BTC is on a mission to break through the resistance level before it is too late. Bitcoin price analysis suggests that huge swings are on the way. In the past year, BTC’s value was capped within the US$30,000-US$69,000 mark. Although analysts said that Bitcoin could reach US$100k in 2021 or early 2022, it seems very difficult at the current trend. Fortunately, a support level could act as a trigger to that amid the growing geopolitical tensions.
How is Geopolitical Turbulence Affecting Cryptocurrency Market?
Since Russia invaded Ukraine and created a wedge between the country and the Western nations, Russians are transferring their wealth into Bitcoin. Experts are warning that Kremlin might also follow to same to evade US sanctions against the country.
The US and UK are trying to cut Russia off from international financial flows. Already, Russian banks have been excluded from SWIFT, an international payment system. Since Russian banks can’t send or receive money from international banks or convert it to dollars or euros, they are looking for other options to stabilize Rouble’s value and continue the international business.
One is by using the Chinese Yuan as a currency to trade overseas and the other is to convert the assets to cryptocurrency and use it abroad. If they opt for the latter, Moscow could resort to selling the nation’s vast mineral wealth against Bitcoin instead of the dollar. But cryptocurrency experts are opining that the market is lacking liquidity to do so.
On the other hand, Bitcoin’s price is gaining value measured in Rubles. The value of the Ruble in contrast with the US dollar has gone down drastically, leading Bitcoin to gain ground in Russia. The demand is heavily coming from wealthy Russians and regular citizens trying to convert their money to cryptocurrency.
What is in store for Bitcoin in long term?
According to long-term Bitcoin price analysis, the cryptocurrency might find liquidity above the US$46k area. Since BTC is facing pressure to perform well and the factors are also coming in favor of the cryptocurrency, it might see a price surge in March and further.