This time yesterday, we wrote about how bitcoin was struggling to breach tough resistance in the $40k region… Only for a 6k daily candle to blast through later in the day, and see prices briefly tag $44,100.
What a difference a day makes.
The Bitcoin bulls are back.
The fact that we saw such a significant rally against the backdrop of continuing conflict in Ukraine is both extraordinary and unsurprising. The fact that bitcoin is outperforming gold is as Lyn Alden put it, pretty remarkable too (and also… unsurprising).
On-chain data also suggests the pump was largely triggered by spot buying, most likely in the context of investors seeking a safe-haven bid given the economic uncertainty surrounding the ongoing conflict.
In fact, bitcoin has flipped the ruble in terms of market capitalization.
The financial sanctions being enacted against Russia have shown just how vulnerable our legacy systems are, and how monumentally screwed regular citizens can end up when the infrastructure becomes compromised, whether as a result of a bank run, cyber-attack, or geopolitical tensions.
The case for decentralized, uncensorable money is stronger than ever.
Terra (LUNA) continues to flex its might, and if yesterday’s FTX listing was the catalyst for a pump, the bitcoin rally only added fuel to the fire.
Bitcoin Fear and Greed Index: 51 (neutral)
“Bitcoin” Google Trends: 58 (+6)
“Crypto” Google Trends: 86 (+5)
Ukraine’s bid to become an EU member state is picking up steam.
And the government is now accepting donations to an official Polkadot address:
The USDT/RUB pair outpaces the bitcoin pair as Russians, unable to buy dollars, flock to stablecoins.
Nonetheless, it would be safe to assume a fair number of Russian oligarchs have upped their BTC holdings considerably too. Huge!
Meanwhile, investment bank Morgan Stanley doubles-down on its GBTC holdings.
And sneaking under the radar (overshadowed by global politics), Arbitrum is the only chain to see an increase in on-chain activity this week.
Yesterday’s price action was the pump we’ve been waiting for: from a technical standpoint, it was an emphatic, volume-backed move that cements the higher low (for now!), and makes a strong, bullish case for a crypto market reversal – Bitcoin has convincingly now decoupled from the NASDAQ and S&P 500. However, the major question is whether Russian buying of bitcoin will negatively impact crypto adoption in the US and Europe, as legislation to prevent sanction-evading behavior could be potentially devastating.