And all because of the absolutely insidious, arrogant, dishonest and ruthless full-scale military invasion of Ukraine by the Russian Federation.
Many crypto analysts, after realizing that there would be no Christmas rally, were hoping for a market recovery in the spring of 2022 if not in February. However, this didn’t happen either. Bitcoin, although it doesn’t go down much to new lows, still cannot break above $45,000 by mid-April and establish this level as support.
World politicians warned the Ukrainian authorities about a possible attack from Russia, but they themselves did not even suspect that this country could not only withstand the aggressor for so long but also give a worthy rebuff, reclaiming its territories.
This resilience and unity of the Ukrainian people impressed the whole world so much that the World itself rallied to help the Ukrainians. This general mobilization also affected the crypto market. The crypto community has raised billions of dollars for humanitarian aid to refugees, as well as to help the Ukrainian army.
And the adoption of cryptocurrencies throughout the civilized world has accelerated significantly. Europe, the USA and Japan adopted new crypto regulatory rules. In addition, cryptocurrencies were included in the sanctions packages against Russia, closing all kinds of access to them in order to exclude the possibility of bypassing the sanctions imposed on the Russian Federation.
The world-famous Anonymous hacker group has declared war on Russia and, directly, on Russian President Vladimir Putin. They hack the websites and databases of various state companies and government agencies, publicizing a lot of documents, as well as blocking the work of these institutions.
Numerous new copies appeared in the NFT world, their proceeds being transferred to various Ukrainian charitable foundations. And the luminaries of the crypto community, such as Vitalik Buterin, transferred staggering amounts of the same funds to various cryptocurrencies.
Therefore, the political, economic and cryptocurrency worlds have united on a single front and created a symbiotic relationship that will only grow stronger and develop in the future. However, how will all this affect Digital Gold?
One of Wall Street's most successful natural resource investors, Greg Beard, believes BTC's drop from its October high to $40,000 is an incredible buying opportunity. In his opinion, if we consider Bitcoin as a long-term investment and analyse how the BTC rate has changed over the past five years, then in the future, in five years, the first cryptocurrency can grow five times. Thus, by the spring of 2027, according to Beard, Bitcoin may well reach the $200,000 mark. And he is not the only one who believes that crypto is the future.
The global head of short-term interest rate strategy at the giant investment bank Credit Suisse, Zoltan Pozsar, believes that the world is now on the verge of establishing a new world financial order (Bretton Woods III), and Bitcoin can greatly benefit from this. He hints that foreign exchange reserves have become an unreliable investment in 2022, thus opening the door to the cryptocurrency market.
And while the price of gold has risen steadily since Moscow began its onslaught, and at the time of writing, the price has topped $2,000 an ounce, up 13.8% from its 2022 low, and the price of Bitcoin and other cryptocurrencies continues to rally, there is no way without hinting at stable growth, perhaps not everything is so sad.
The head of the Nexo crypto-lending platform, Anthony Trenchev, said in an interview with CNBC that by the end of 2022, the first cryptocurrency could rise in price to $100,000. Alex Mashinsky, CEO of Celsius Network, shares this opinion as well. In an interview with Kitco News, he stated that both Bitcoin and Ethereum will set new all-time highs due to the fact that many investors switch their attention from the stock market to the crypto market.
“All assets are inflated — real estate, bonds, stocks — it doesn’t matter, you can’t hide money anywhere! Even if you want to buy commodities, prices for most of them are close to records. Where are you going to “park” your capital? The best way is to transfer to an industry that is not related to the US dollar — to Bitcoin,” he explained.
Due to such a massive flow of capital into cryptocurrencies, the rate of Bitcoin and other crypto assets, of course, will grow. But the former CEO and co-founder of the BitMEX exchange, Arthur Hayes, believes that before rising Bitcoin will certainly fall. And Anthony Trenchev also shares this opinion.
According to Hayes, Bitcoin may soon test the $30,000 level, and this will happen following the fall of the Nasdaq 100 index (NDX).
In fact, it is not known exactly how the situation in the crypto market will develop in the short term. Especially since the geopolitical and economic situation remains rather uncertain, and hodlers are in no hurry to sell their crypto assets. However, if in the spring five years ago Bitcoin could be bought for less than $1,000, what will be next? Maybe in the spring of 2027 we will sit by the fire and regret that we did not acquire at least a piece of Bitcoin at a price of $40,000, remembering this period as a missed opportunity… Or something completely new will come to replace Bitcoin. Who knows?