Cryptocurrencies continue to rally as Tensions rise between Russia and Ukraine

Bitcoin has extended its two-day rally as it leads cryptocurrencies in gains with digital assets returning to form following the recent crashes early this year. The assets have once again established themselves as a haven for getting around sanctions amidst the growing tensions between Russia and Ukraine.

Last Tuesday, BTC grew as much as 8% to $44,964 with its market capitalization going above $840 billion. Other cryptocurrencies also advanced as Ether broke the $3,000 mark.

Analysts claim that these breakthroughs support the idea that crypto could act as a type of refuge with the war in Ukraine intensifying. The idea stems from the fact that these assets are detached from government control and are not reliant on their actions.

According to Stephanie Ouellete, the chief executive of FRNT Financial Inc., Bitcoin “has gold-like properties in that if you hold it you directly control the assets as opposed to governments and banks being in between.”

“In a period where banking is destabilized in a region, which is obviously happening in Europe right now, it would make sense to see some flows into BTC as people diversify away from the banking system,” he said, adding that speculators can get in front of such trends, which can drive prices higher.

Furthermore, Nicholas Colas the co-founder of DataTreck Research, said that this rally is about “the utility of these assets to serve as a potential workaround for Russia sanctions and also a point of proof that virtual currencies are viable alternatives to fiat currencies like the Russian ruble,”

“Bitcoin saw a significant upward move today as it appears to have slightly regained its safe-haven status while the Russia-Ukraine conflict continues to intensify,” said Walid Koudmani, an analyst at XTB Market.

Source: Bloomberg