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Bitcoin, Ethereum, Dogecoin rally as crippling sanctions on Russia raise expectations for them as competition SWIFT – Bitcoin – US Dollar ($BTC)

Bitcoin, Ethereum, Dogecoin Rally As Crippling Sanctions On Russia Give Rise To Expectations Of Them Emerging As SWIFT Competition

Bitcoin and other coins rose sharply late Monday as the global cryptocurrency market cap rose 12.2% to $2 trillion.

Price performance of major coins
Piece of money 24 hours 7 days Price
Bitcoin (CRYPTO: BTC) -15.7% 17.3% $43,497.43
Ethereum (CRYPTO:ETH) 12.8% 14.4% $2,946.14
Dogecoin (CRYPT: DOGE) 8.9% 3.9% $0.13
Top 24 hour earners (data via CoinGecko)
Cryptocurrency % change over 24 hours (+/-) Price
Waves (WAVES) +49.4% $16.96
Theta network (THETA) +26% $3.38
Neo (NEO) +24.7% $24.59

See also: How to buy bitcoins (BTC)

Why is this important: Investors will be on the hunt for the chairman of the Federal Reserve Jerome Powell as he makes his appearance before Congress this week for giving his semiannual testimony on the monetary policy report.

As Western nations impose sanctions on Russia following its invasion of Ukraine last week, anxiety over aggressive rate hikes has subsided, however, the Federal Reserve is expected to impose a US rate hike. a quarter point at his two-day policy meeting in March, reported Reuters.

“We expect Chairman Powell to strongly suggest in his testimony to Congress that the Fed will go 25 basis points, not 50 basis points, at the March 16 meeting,” Wells Fargo said, in a research note seen by Reuters.

Meanwhile, it is the sanctions themselves that could give Bitcoin and other cryptocurrencies a boost.

“Western allies are imposing tougher sanctions and restrictions on Russian banks, which strengthens the case for blockchain products that will compete with the SWIFT network,” said Edouard Moyasenior analyst at OANDA, in a note seen by Benzinga.

“Bitcoin and all the top altcoins are rallying today as investors realize the likelihood of massive investments in DeFi following the latest round of Russian sanctions.”

In a tweet, cryptocurrency trader Michael van de Poppe underlined the “strong movement of [Bitcoin]and said it “looks like the upside is the way for the week ahead.”

Even so, those who bought the apex coin during market highs have capitulated, though the resolve of the so-called Hodlers remains intact, according to a weekly update from Glassnode.

The on-chain analytics firm said Bitcoin’s main redistribution “appears to come from investors who bought the $60,000+ range around the all-time high, which found new owners around the current price range. from $35,000 to $38,000.”

Glassnode analyzed the UPRD metric, which tracks the supply distribution of coins at the price it last moved on-chain.

While during the May-July period there was a “degree of demand” from buyers willing to buy at higher prices, markets were cleared of exuberance when activity in chain on the Bitcoin network shrunk in the following months, leading to redistribution.

Bitcoin: UPRD in May 2021 — Courtesy of Glassnode

Glassnode said the spending behavior describes a market “dominated by price-insensitive Hodlers, who seem unwilling to liquidate their coins, even if held at a loss.”

Bitcoin UPRD in February 2022 — Courtesy of Glassnode

“Top buyers have been significantly eliminated and represent a much smaller proportion of the investor cohort compared to May-July 2021.”

Glassnode said they had not witnessed a widespread decapitulation event despite the risk that a “kinetic conflict” – such as that between Russia and Ukraine – introduced except for holders at very short notice. futures who bought record lows or premature drawdowns. Bitcoin Hodlers “maintains remarkably bullish conviction.”

Read more : Bitcoin Volume in Russia Soars as Ruble Falls and Tensions Rise