Geopolitical Tensions Could Not Beat Bitcoin: Now Is The Best Time To Trade BTC
The crypto market has been affected by the geopolitical issues that have arisen lately. With the Ukraine-Russia conflict still raging on, various financial markets are still feeling the heat.
Bitcoin has experienced huge volatility recently, surging from $38,500 to $42,500 and then crashing to $38,500 in a very short time.
However, not all investors are deterred by the current climate. Inflow volumes also show that investors still believe in the crypto market.
Crypto Funds Register Largest Weekly Inflows Since December
Digital asset investment products registered $127 million worth of cumulative inflows for the week ending March 6, according to CoinShares data. It was the highest weekly inflow since Dec. 12, 2021.
The increase was also significantly higher than the $36 million of inflows registered the previous week.
It is a testament to the faith that investors continue to have in bitcoin. Despite the early December crash, investors have repeatedly shown that their money is still on bitcoin, and with last week’s inflows, there is no doubt about this.
Bitcoin Bounced As Crypto Investors Appeared to Agree U.S. Executive Actions
According to the White House, U.S. President Joe Biden signed an executive order on March 9th requiring the government to assess the risks and benefits of creating a central bank digital dollar, as well as other cryptocurrency issues.
The executive order is much less intrusive than the market feared, with it mainly directing the federal agencies and other key agencies to evaluate cryptocurrencies’ role on “the future of money”.
It is worth noting that it instructs the Commerce Department to research how cryptocurrencies might help support US competition in the global economy.
Overall, it seems that the U.S. government is taking an approach to accept and coexist with crypto, instead of stamping it out.
What Can We Expect For BTC?
Despite the global macro and geopolitical stage continuing to create uncertainty in the market, long-term BTC holders are sitting tight and not selling their assets.
From the BTC Percent of Supply chart on Glassnode, 61.72% of BTC which has been held for more than 1-year have not moved.
This percentage of holding has been rising since the beginning of 2022 and has picked up pace as the Russia-Ukraine war breaks out, showing the Hodlers’ strong belief on BTC price appreciation.