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• Bitcoin rose by 6%, to $44,219.50 in the last 24 hours
• Cryptocurrency’s public nature emerges as an alternative during the conflict
Bitcoin’s price jumped as much as 16% on Tuesday, as Russian intensified the war on Ukraine, while the West up sanctions.
The cryptocurrency was last up 6% in the previous 24 hours to $44,219.50, according to Coin Metrics. The second-largest cryptocurrency, ether, jumped 5.4% to $2,980.38. Earlier in the day, the crypto asset rose above $3,000.
Bitcoin’s performance on Tuesday took the price back to where it stood in early February, well before it became clear that Russia was planning to invade Ukraine.
Investors believe that Russia could use bitcoin to evade sanctions, which could be one reason behind the cryptocurrency’s rise. At the same time, the cryptocurrency’s public nature could help track Russian transactions if it used bitcoin exclusively to manage the central bank’s reserves.
The conflict in Eastern Europe exposes the risks of the traditional financial system which is being rattled by the heavy sanctions laid on Russia. Cryptocurrency emerges as an alternative in the war as it is not owned or issued by a single authority like a central bank.
Bitcoin is down 8% year to date, gaining ground on gold, seen by many investors in traditional financial markets as a haven during times of geopolitical turmoil and reduced risk-taking. Gold is still winning so far in 2022, up 6% on the year.
Also read: Crypto exchange Binance blocks sanctions-targeted Russians, says it will not ban all accounts
(With inputs from CNBC)