Mike Novogratz, a former hedge fund manager at Goldman Sachs, has commented on the state of the cryptocurrency market amid the ongoing Russia-Ukraine war crisis.
Speaking to Bloomberg on Tuesday, March 1, Novogratz stated:
The Russo-Ukrainian war will act as a potential booster for Bitcoin and cryptocurrencies as people turn away from the US dollar.
Russia faces severe sanctions as the world shuts down the aggressor from the global financial system, SWIFT.
As a result, the “Russian ruble” has depreciated 40% of its value against the US dollar over the past week, dropping to its lowest level in several decades.
On the other hand, Ukraine also reduced the use of its fiat currency and started accepting cryptocurrency donations to fund its war against Russia.
Novogratz believes that such penalties and restrictions are more likely to push people towards the adoption of decentralized currencies.
He clarified that this does not mean that bitcoin or cryptocurrency acts as a tool to avoid sanctions.
He explained during his interview:
Currently we have a group of states confiscating real estate from Russian business tycoons.
This sends a message: I want to have money that lives outside of traditional authority.
The crypto market was affected by the Russian-Ukrainian war:
The cryptocurrency market has seen wild fluctuations in the wake of the Russian invasion of Ukraine last week.
While during the past two days, we witnessed a major reversal in the trend movement.
On Monday, bitcoin and the broader crypto market posted double digit gains.
On the other hand, the stock market continued to decline.
All this shows that Bitcoin and other cryptocurrencies have separated themselves from risky assets.
Over the past week, here’s how bitcoin’s relationship with the Nasdaq has gone (bitcoin in orange):
Bitcoin in orange, Nasdaq in blue pic.twitter.com/pbqz1UYEXe
— Will Clemente (@WClementeIII) March 1, 2022
On the other hand, while the Russian ruble is facing a collapse, Russians are turning aggressively towards cryptocurrencies.
Trading volumes of the Russian ruble against bitcoin have tripled over the past week, on cryptocurrency exchange Binance.
As of press time, Bitcoin is trading at $44,218 with a market capitalization of $839 billion.
If bitcoin price maintains $45,000 and closes above it, we could see some real bullish potential beyond.
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