Why Cryptos are Popping Off

Bitcoin and Ethereum are rising in price as global tensions cause uncertainty in other markets.

Cryptos

  • Bitcoin surges above $42K
  • Ether accelerates to clear the $2,700 level

Cryptocurrencies are on the rise once again. On Wednesday, Bitcoin (BTC) rose by more than 9% and added nearly $3,000 to its price as it breached the $42,000 mark while Ethereum’s cryptocurrency ether (ETH) gained 7.6% to clear the $2,700 level. The sudden increase in values comes after the last weeks of strong volatility in the market prompted by uncertainty around the impact of the crisis in Ukraine.

Similarly, most other major coins are attempting an upside correction with, Cardano (ADA), Terra (LUNA), Avalanche (AVAX), Solana (SOL) and Litecoin (LTC) surpassing gains of 5%, 20%, 9%, 7% and 6%, respectively.

The sudden increase in crypto value comes a day after news of President Biden reportedly planning to sign an executive order this week to firm up the government’s approach to cryptocurrencies. There’s been a lot of discussion about the crypto market in the context of the Russia-Ukraine war crisis and whether they play a role in helping to mitigate the effects of the conflict.

The short answer is that — and this despite the fact that the macro backdrop right now favors commodities — not just BTC and ether, but the crypto market as a whole can in fact play a very important role considering the current geopolitical situation developing in the region.

Cryptocurrencies are borderless, decentralized, and secure, which makes them well-suited for use in times of conflict or crisis. And, as per on-chain data provider Santiment, crypto discussions continue to gather pace with experts and enthusiasts alike debating the pros and cons of the technology.

In his latest report on Wednesday, March 9, Singapore’s largest bank CEO Piyush Gupta said that cryptocurrencies will take over the role of state-backed money and that “private money (crypto) will continue to grow as a meaningful store of value, much like gold is today.”

About Ron Haruni 1157 Articles
Ron Haruni

Be the first to comment

Leave a Reply

Your email address will not be published.


*

This site uses Akismet to reduce spam. Learn how your comment data is processed.