Russia’s Energy Announcement and Terra’s Hefty Purchase Pushes Bitcoin to $45k
Welcome back to the Tribe! In this post we dive into the update of Russia’s Energy Announcement.
Nothing should be considered investment or financial advice. Enjoy the ride!
Russia’s Energy Announcement
The world’s leading crypto by market capitalization Bitcoin has maintained the $40k range after a stunning rally this week. Daily total crypto trading volume also crossed $100 billion as cash flowed into the whole market triggering broad-based gains.
Analysts have surmised that Russia’s energy declaration and Terra’s huge bitcoin could be factors behind the recovery from Bitcoin.
Bitcoin Showing Bullish Movement
According to data from on-chain aggregator CoinMarketCap, Bitcoin hit $45,000 on Friday (March 25, 2022) for the first time since February 2022. The world’s top digital currency has also managed to stay above the critical $42k support level. Also, Bitcoin’s fundamentals and indicators incentivized bullish sentiment across the crypto space after the leading token closed above the 100-day moving average.
Following a lackluster weekend, Bitcoin crunched the week in barnstorming fashion and ushered in some relief for toke holders. Solana crossed over the $100 mark, Ethereum reclaimed $3k and Cardano’s ADA is trading above $1.
ThorChain’s native token RUNE also made headlines after recovering lost territory and breaking above $9.
Furthermore, on-chain data shows that the number of wallets that hold BTC has grown by over 90% since March 2018. 5 years ago, approximately 20.8 million digital wallets held Bitcoin. This week, that number breezed past 40 million marking a landmark moment for the world of digital assets.
In addition, data from CoinMarketCap also revealed that Bitcoin’s market cap crossed a whopping $800 billion. BTC’s trading volume for the last 24 hours is also over $30 billion while the total crypto market cap hovers just above $2 trillion.
Crypto proponents and market analysts alike have highlighted $46k as a critical resistance level for Bitcoin to break.
Russia Says It Will Accept Bitcoin as Payment For Energy Resources
Bitcoin’s rally came shortly after the Russian Federation announced a key plan to mitigate the effects of economic sanctions following its invasion of Ukraine. Deputy chairperson of Russia’s Duma energy committee, Pavel Zavalny, revealed the country’s plan to implement a flexible payment structure for friendly nations.
Pavel who disclosed the news during a press conference on Thursday said:
“If they want to buy, let them pay either in hard currency, and this is gold for us, or pay as it is convenient for us. The set of currencies can be different, and this is normal practice, [so] you can also trade bitcoins.”
Terra buys $3 billion worth of BTC for UST Reserves
In line with Co-founder Do Kwon’s big Luna bet, Terra has supposedly invested at least $125 million towards bolstering its UST reserves. The vault features a massive bag of BTC. According to the tweets from Do Kwon, Terra plans to ultimately deploy around $3 billion to secure its Bitcoin reserve.
Commenting on Terra’s decision to choose Bitcoin for its UST vault rather than leading altcoins like Ethereum or BNB, Kwon opined that:
“I mean a couple of reasons here, but put simply, bitcoin is the only hard reserve asset that’s been proven out of the digital currencies… It is very difficult for somebody in crypto to question bitcoin.”
While these factors could have spurred an aggressive rally from Bitcoin, the reason behind this week’s movements remains unknown. Although the general sentiment in the space is somewhat positive, a few analysts stress that a retrace to the $30k region is possible before Bitcoin races to the $100k mark.
Other News – Bank Of England Report on Cryptoassets
The Bank of England’s Financial Policy Committee (FPC) in a report, is assessing the risks and the financial stability implications of cryptoassets and decentralized finance to the financial system. This will provide a future regulatory framework for crypto and decentralized finance.
Russia’s Energy Announcement News
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The first-ever Bitcoin x Gold exchange-traded product was launched by a collaboration between ETP issuer 21 Shares and ByteTree, an asset management heavyweight. Dubbed BOLD, the fund will debut on the Swiss exchange SIX. BOLD is split with an 18.5% BTC and an 81.5% Gold sharing formula. An algorithm that leverages 360-day historical volatility data will rebalance the fund on a monthly basis.
