Bitcoin has done much better than many expected and predicted since the outbreak of the war between Russia and Ukraine. But BTC is not alone: other coins such as Cardano have also made strong gains.
After months of a steady downward trend, BTC has shown a strong sign of life in recent days and weeks. The psychologically important mark of 40,000 dollars currently seems to be holding – with an upward trend. This means that the largest cryptocurrency is still far from catching up with the price rallies of the past year, but the signs are extremely positive.
Thank you, Terra!
One of the reasons for the current price increase could be enormous investments by the crypto project Terra, because in order to hedge the dollar price of their own stablecoin TerraUSD, the blockchain operators, unlike other stablecoin projects, have used their reserves in the form of their own cryptocurrency Luna as well as bitcoin. In total, the project leaders want to spend three billion dollars on bitcoin investments in the short term; most recently, Terra is said to have bought up $125 million worth of bitcoin via Binance. Terra (Luna) is currently the eighth largest crypto project on the market, so the investments could become important drivers for the Bitcoin price, which in the end again supports the whole market.
Cardano is back
The stabilisation of Bitcoin also caused Cardano to take a breather: since its all-time high in September, Caradano lost 76 per cent of its value and even slipped below the one-dollar mark. But all that is water under the bridge: After a price jump of 30 per cent in just three days, the signs are finally pointing to recovery for Cardano – not least because of Coinbase’s announcement that it will now offer its customers uncomplicated staking of the Cardano currency ADA.
Quo vadis, Bitcoin?
If Bitcoin manages to stabilise beyond $46,000, crypto experts expect the market to rally as it did at the beginning of 2021. What remains is uncertainty: geopolitical factors play a strong role on traditional exchanges. But there are increasing signs that the cryptocurrency, which has the nimbus of volatility, can keep up well with other assets even in a global crisis. One reason for this is not least the Ukrainian government, which is betting heavily on crypto during the war. But Russians are also trying to keep their assets safe in the form of digital assets.