Bitcoin had a value increase of up to 16% on Tuesday, continuing its strong rally despite the situation between Russia and Ukraine , and the increase in US sanctions.
The cryptocurrency last rose 6.4% in the last 24 hours to arrive at a price of $24,640.60 dollars, according to CNBC. That rally comes after cryptocurrency prices plummeted last week, as risky assets such as stocks also fell following the Russian invasion of Ukraine.
The second The most important cryptocurrency in the market, the Ether, jumped 4.3% to reach a value of $2,948 dollars. Earlier in the day, this cryptocurrency topped $3,16 dollars.
Market analysts said there could be a number of reasons behind the huge rise in bitcoin price, including investors taking advantage to buy when there is a drop in price, as well as attempts to evade sanctions from the Russian government, and Ukrainian and Russian citizens trying to get their money out of their respective countries using cryptocurrency.
It should be noted that the United States has already frozen assets of Russian banks in the country, among other sanctions. However, Russia could still move money through the use of cryptocurrencies.
If the Russian government and tycoons are moving their fortunes with Bitcoin, this could have helped increase the price of the cryptocurrency.
Another possible reason is that over the years bitcoin has been promoted as a kind of gold digital. In other words, it would function as an asset that can preserve and even increase its value in times of financial turbulence, such as times of war.
Therefore, it is possible that investors from all over the world are beginning to protect their money by selling their shares or other assets and buying bitcoin, hoping that their fortunes do not lose value.
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