Bitcoin and other cryptocurrencies have come a long way. Over the past few years, cryptocurrencies have been able to silence critics by holding steady value and in some instances increasing in value despite the economic crash experienced around the world due to the global pandemic. Bitcoin and Ethereum in particular showed an increase in value despite the lockdown. Many other assets suffered a great loss in value as a result of the pandemic and the shutting down of various economies. However, cryptocurrencies experienced an increase in value.
Crypto is now serious money
When Bitcoin was first traded in 2010, it was trading at $0.0011 AUD. The cryptocurrency’s value has skyrocketed since then. Bitcoin achieved an all-time high price of slightly above $87,000 AUD in April 2021.
While Bitcoin and other cryptocurrencies have been able to hold a steady value or increase in value over the past few years, the cryptocurrency market was hit by a dip following the invasion of Ukraine by Russia a few weeks prior to publishing. The Bitcoin price dropped to below $47,759 AUD. Ethereum price dipped to below $3274.
However, the market soon bounced back. Bitcoin prices recently hit the $45581 AUD mark and held steady for several days. Prices have since risen and Bitcoin recently hit a value of $61404 AUD on a single day. Other cryptocurrencies are also seeing an upward trend.
Bitcoin is now being viewed as a worthwhile investment even by institutions. Tesla notably bought a large sum of Bitcoin and continued to hold onto them. Elon Musk is also known to have a keen interest in the crypto industry. He is widely known as the father of Dogecoin.
Bitcoin prices and the value of other cryptocurrencies are on a steady rise as more people continue to invest in the digital currencies. It is expected that the price of Bitcoin will rise to above the $68,000 AUD mark.
Current Geo-Political Climate a Double Edged Sword
While cryptocurrencies are slowly recovering from the effects of Russia’s invasion of Ukraine, analysts warn that the crypto market is still not out of the woods. A lot remains to be seen. At the moment, Ukraine is accepting crypto donations and its citizens are turning to crypto for day to day transactions due to the shortage of fiat currencies. Cryptocurrencies are also being used by Ukrainians as a means to hedge their wealth against the current economic downtown that has hit the country. Demand for stablecoins in the country has skyrocketed.
Russia on the other hand may not be using cryptocurrencies at present but could turn to them as a means to circumvent the multiple sanctions against it. If this happens, investors can expect a nose dive in the value of popular cryptocurrencies and the market in general.
As the world waits to see how events progress, crypto investors have their eyes on the market to see how it will be affected.