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Bitcoin has been showing big fluctuations since the beginning of March.
In early March, a large number of continued purchases by Russia was named as one of the main causes of the US Nasdaq decoupling. The Russian stock market fell sharply due to the recent war, and the fact that many Russians have chosen cryptocurrencies as an alternative to the Russian Ruble created the asset stream into cryptocurrency exchanges.
However, after the big rise from this influx, the price of Bitcoin has fallen by around 15%. It rose to $45,000 on March 1st, 2022, and looked likely to continue its upward momentum again, but it is currently trading at $39,000 due to the aforementioned 15% decline.
The downtrend is continuing with concerns that the Ukraine-Russian war could escalate into a nuclear crisis and the announcement of another regulation on cryptocurrencies at the outcome of the US Federal Reserve meeting. According to the fact sheet in the executive order of U.S. President Joe Biden, the forefront goal “to Protect Consumers, Financial Stability, National Security, and Address Climate Risks” reflects in the direction of regulating cryptocurrencies by including them in financial assets.
However, contrary to the gloomy downward trend in price, trading volume is booming. With Bitcoin dominance at 42.6%, Bitcoin circulation is at its highest in 9 months, indicating that whales are actively sending and receiving Bitcoin. This means that a large number of OTC (over-the-counter) transactions are taking place.
We have witnessed that war can make cryptocurrencies stand out in a geopolitical risk situation. It looks like the possibility of multiple countries accepting cryptocurrencies is opening through fundraising and public wallet disclosure. Also, the appearance of the chart is similar to that of March 2020. At that time, a long bull market was drawn after a major decline due to the COVID-19 pandemic breakout. Whether this move will ever be realized again remains unclear though.
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Comments from industry-renowned influencers on Bitcoin price:
On March 6th, Bloomberg Chief Commodity Strategist Mike McGlone shared via his personal Twitter account that Bitcoin could drop as low as $30,000.
On March 5, Robert Kiyosaki, author of the best-selling book “Rich Dad Poor Dad,” left a message urging you to save your current gold, silver and bitcoin as an investment against inflation.
On February 28, Binance CEO Changpeng Zhao argued that Bitcoin is a neutral, borderless currency, is on no side for anyone, can be used in any country, and is superior to gold.
On February 24, FTX founder Sam Bankman-Fried left a message that Bitcoin could be an alternative to currency instability in Eastern Europe caused by the Ukraine-Russia crisis.
On February 20, Du Jun, co-founder of Huobi, the world's largest cryptocurrency exchange, predicted in an interview with CNBC that "Bitcoin will not see a bull market until late 2024 or early 2025." .