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- CZ’s prediction for the markets comes through after a week.
- The market appears to have recovered from the shock of the crisis in Europe.
- Crypto demand is increasing as conflict rages on.
Bitcoin briefly went above the $44k price level as the crypto markets staged a comeback. This comes about a week after the crisis in Eastern Europe that crashed equity and crypto markets.
CZ Calls The Move
The CEO of Binance, the world’s largest crypto exchange, Changpeng Zhao, took to Twitter to state that “it often takes a week for the market to understand.” This comes after the announcement of Russia’s invasion of Ukraine sent the crypto markets into a free fall.
CZ called the recent bullish momentum on Twitter exactly 7 days ago in response to reports which suggested that bears were gaining dominance as a result of geopolitical uncertainty in Eastern Europe. At the time, he noted that such periods would usually drive demand for crypto, accepting, however, that there was always a chance he could be wrong.
“Things I don’t understand. I’d have thought that an “unpredictable geopolitical situation” would increase demand for crypto. Either I am off (usually) or they are (opportunity)?”
Moments after Putin’s broadcast disclosing a military operation in Ukraine, the markets were sent spiraling, and in just a short while, the entire crypto market lost about $150 billion. Assets like Bitcoin and Ethereum dropped to monthly lows and trading volumes tumbled as well.
Against all odds, the markets have reversed the trend, embarking on a strong rally. According to data from CoinMarketCap, assets like BTC, ETH, BNB, LUNA, ADA, and SOL are all up by double digits compared to last week. LUNA remains the biggest gainer, up an impressive 85.25% in the last 7 days and 26.07% in the last 24 hours. Bitcoin is up about 15% in the last 7 days and 13% in the last 24 hours.
Crypto Thrives In Conflicts
Despite initial market reactions, the conflict has inadvertently increased the demand for cryptocurrencies. This comes as several financial institutions in Ukraine halt services and impose sanctions on Russia’s economy, leading to the switch to cryptocurrencies by affected entities.
As financial institutions in Ukraine yield to the pressure of the conflict, it has become difficult for people to access cash. Due to a scarcity of cash, it was reported that two Danish reporters, Stefan Weichert and Emil Filtenborg, purchased a used Mazda 3, which they used to flee Ukraine using 0.059 BTC.
Crypto donations to Ukraine have since surpassed $50 million following the government’s decision to call for donations in Bitcoin and Ethereum. In Russia, transaction volumes between the USDT and the Rubble have reached an all-time high.
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