The cryptocurrency market has been showing quite volatile movements in recent days, led by bitcoins (BTC). The growth that began in the first days of February has lifted the market. During this period, many altcoins saw serious gains. After reaching a streak of $45,000, BTC, which began a correction, broke support at $40,000 last week. The outbreak of war between Russia and Ukraine came as a shock to the crypto market. BTC, which had been accumulating around $38,000 for a while, quickly fell to the $34,400 mark after the war began. In the evening it began to rise again, but sales were conducted from the area of $39,800.
So what was the main reason for such volatility of Bitcoin in one day? It is known that the decline was caused by the Russian-Ukrainian war. So why was there a rise? According to some experts, the reason for the rise was the statements of U.S. President Joe Biden. Russia, which declared war on Ukraine, faced a weak reaction from Western states. US President Biden said that as the first of the sanctions, the assets of Russian billionaires in US banks were frozen and they would not be able to access this money.
Russian billionaires invested in cryptocurrency market to protect their money
The reason for U.S. President Joe Biden’s decision to adopt this sanction is said to be “the anticipation that billionaires who want to preserve their capital will put pressure on Putin to stop the war.” However, the billionaires allegedly went the other way, and Biden’s plan was thwarted. Billionaires who were not involved in something like pressuring Putin to stop the war invested in cryptocurrency to protect their money. It has been stated that these billionaires usually invest in Bitcoin. After the aforementioned investments, Bitcoin jumped from the $35,000 range to about $39,000 in a short time. It has been claimed that this is the reason why the market suddenly went up yesterday.
The volatile nature of the crypto market has investors nervously standing by and watching the trend. Millions of small investors are currently in a bad position as they invest in coins at a high price. The large number of leveraged positions opened during this period is causing investors to lose money. Many investors wait until the market bottoms before trading. Some investors are waiting for bitcoins to hit the $29,000 streak again.
Some users argue that Russian billionaires investing in bitcoin are the reason for the recent rise. Investors who argue that these rapid drops and rises are a “liquidity cleanup,” say leveraged positions have been closed and many investors are staying away. Referring to the fact that those who opened short trades were cleared with the latest rise, users noted that long leveraged trades could be cleared in the same way in the coming days.