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Bitcoin up 10% after the Treasure imposes new sanctions against Russia
People complain about crypto being too correlated with stocks— they say this proves that it's not a hedge (for inflation, for liquidity crunches, etc).
But here's an example of a divergence between traditional assets and cryptocurrencies.
If Bitcoin and stocks continue to move in opposite directions in light of the geopolitical events going on right now, it strengthens the argument that Bitcoin is becoming its own thing.
Biden's sections would effectively freeze Russian central bank assets within the US, prohibiting Americans from doing business with Russia.
The crisis is directly influencing trading behavior.
Since Thursday, when the invasion by Russia began, transactions on centralized Bitcoin exchanges in both the Russian ruble and the Ukrainian hryvnia surged to their highest levels in months (source: Kaiko)
The Russian-Ukraine conflict is highlighting the #UseCases of borderless and censorship-resistant money.
The rise in crypto could also be the market becoming skeptical that the Fed will be able to raise interest rates, and pricing in fewer rate hikes in 2022.
Prices are driven by narrative in crypto, so don't underestimate the strength of the humanitarian case for bitcoin right now; the Ukraine government has raised more than $10 million in cryptocurrency donations as of Sunday.
No bitcoin for you? I think we will begin to see mass exodus of BTC held on exchanges as people quickly learn the value in cold storage of their keys given a lot of the current geopolitical landscape and vulnerabilities of reliance on intermediaries
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