Former Goldman Sachs hedge fund manager and crypto billionaire Mike Novogratz recently weighed in on the crypto market situation amid the ongoing war crisis between Russia and Ukraine.
Speaking to Bloomberg on Tuesday, March 1, Novogratz said the war between Russia and Ukraine will serve as a potential booster for Bitcoin and crypto as it moves people away from the US dollar.
Russia has faced severe sanctions with the world isolating the aggressor from the global financial system SWIFT. As a result, the Russian ruble has lost 40% of its value against the USD in the past week, reaching a multi-decade low. On the other hand, Ukraine has also cut back on the use of local currencies and has started accepting crypto donations to fund its war against Russia.
Novogratz believes that such sanctions and restrictions are likely to encourage people to adopt the decentralized currency. However, he made it clear that this does not mean that Bitcoin or crypto serves as a tool to avoid sanctions. During his interview, the founder of Galaxy Digital Holdings said:
“We have never had a group of nations essentially confiscating real estate from Russian magnates. This sends a message: I want money that lives outside of traditional power.”
Crypto Disconnects From Risk-On Witness
The crypto market witnessed a heavy blow after the Russian invasion of Ukraine last week. However, over the past two days we have witnessed a major trend reversal. On Monday, Bitcoin and the broader crypto market posted double digital gains.
On the other hand, the stock market continued to fall. This shows that Bitcoin and crypto have decoupled themselves from the risk-on assets. This is where Bitcoin’s correlation with Nasdaq came out in the past week.
Bitcoin in orange, Nasdaq in blue pic.twitter.com/pbqz1UYEXe
— Will Clemente (@WClementeIII) March 1, 2022
On the other hand, as the Russian ruble faces a collapse, Russians are aggressively adopting crypto. Trading volumes of the Russian ruble for Bitcoin have tripled in the past week, on crypto exchange Binance.
My latest: Rubles trading pair volumes soar on Binance after Russian invasion of Ukraine
Prior to the invasion, average daily volumes in February were $11 million
Since the invasion, average volumes are at $35.8 million pic.twitter.com/797BKOi9hI
— Frank Chaparro (@fintechfrank) March 1, 2022
At the time of writing, Bitcoin is trading at $44,421 with a market cap of $837 billion. If BTC price holds at $45,000 on a closing basis, we can see some real upside potential here.
#bitcoin double bottom pattern in the game! IF we break the resistance line, the breakout could send BTC back to the mid-50k! Only valid when breaking the top line. pic.twitter.com/9XVimEra5c
— Lark Davis (@TheCryptoLark) March 2, 2022
Disclaimer
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
About the author
Bhushan is a fintech enthusiast and has a good flair in understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time, he reads thriller-fiction novels and sometimes explores his culinary skills.
This post Russia-Ukraine War Could Boost Crypto and Weak USD
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