Bitcoin (BTC) Price Soars to 3-Week Highs on Geopolitical Uncertainty

Bitcoin (BTC) price is on the rise again, this time with a 13% spike triggered by the U.S. imposing further sanctions on Russia.

The world’s largest cryptocurrency is up over 1% today to test a key short-term resistance near the $45,000 handle.

Bitcoin has been seen by many as “digital gold”, although the digital asset plunged last week after Russia invaded Ukraine. Unlike gold, Bitcoins value has been fluctuating amid geopolitical tensions and climbing inflation.

Still, Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, believes this is about to change.

“Bitcoin and cryptocurrencies are arguably having their watershed moment against the backdrop of global uncertainty and tension related to the Russia-Ukraine crisis,” Ayyar told CNBC.

Ayyar also mentioned cryptocurrency donations to the Ukrainian army as proof “that crypto is fundamentally a technology that cannot be ignored,”.

Washington’s decision to prohibit all Americans from doing business with a Russian central bank further tightened the already imposed sanctions. Some experts expressed their opinion that Russia might use Bitcoin to avoid the sanctions.

However, Ari Redbord, head of legal and government affairs at TRM Labs, believes that Russia’s “liquidity just simply isn’t there,” for this to happen.

Mark Mobius, the veteran investor, had his say on the subject advising people against buying into the cryptocurrencies unless they are Russian.

“I would say that’s the reason why bitcoin has shown strength now — because the Russians have a way of getting money out, getting their wealth out,” Mobius told CNBC.

He also added that the Russians would be “really in trouble with all the closures of the different avenues for them to transfer money out.”

Asked about where to invest following the geopolitical turbulence, Mobius urged investors to buy gold.

“Gold is a place to be, as I’ve mentioned for a long, long time, it’s very important to have some physical gold,” he said.

By Senad Karaahmetovic | [email protected]

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