The cryptocurrency market has recovered from the ruins it fell into when Russia’s invasion of Ukraine began, with Bitcoin leading the way.
Bitcoin climbed beyond $44,000, up more than 17% from its daily open price of $37.7k, the most daily gain in over a year.
As Russian soldiers invaded Ukraine, global financial markets and crypto markets were hammered, sending investors fleeing and sparking sell-offs across major asset classes.
Crypto, on the other hand, has decoupled from the traditional market collapse, with altcoins skyrocketing alongside Bitcoin, causing the overall crypto market cap to rise above $1.9 trillion after gaining $200 billion in less than 24 hours.
Nearly 67k traders were liquidated across the cryptosphere in just 24 hours as a result of the market pump, bringing the total amount liquidated to more than $313 million.
The market may have had a tough week, but investors look at things from different perspectives, and some saw the sell-off as a buy-on-the-dip opportunity.
The number of transactions above $100,000 and $1 million reached an all-time high on January 24th, according to Santiment, a blockchain analytics startup, resulting in a price increase the following week.
Whales’ projection and strategy appear to have worked out exactly as planned, with the drawdowns largely driven by retailers selling out of panic.
The continuing Russia-Ukraine conflict has benefited Bitcoin, since its potential as a disaster hedge has so far proven to be successful. With the US Federal Reserve expected to make a decision on key interest rate hikes this month, Bitcoin might also benefit from the inflation hedge narrative.