Bitcoin, Ethereum, and a bevy of other major cryptocurrencies have all witnessed large rises in an unexpected move as the market’s positive sentiment persists.
Within the last two weeks, the cryptocurrency market has gained a huge $350 billion, with Bitcoin (BTC) leading the charge, breaking beyond the $44,000 barrier, a three-week high.
The world’s most valuable cryptocurrency rose to a three-week high of $44,200 earlier on Thursday before easing down to $44,000.
News circulating on social media that Russia may soon adopt Bitcoin as a form of payment for energy exports fueled the rally to $44,000.
The potential of Russia adopting Bitcoin for energy exports was extracted from a press interview with Pavel Zavalny, Chairman of the Russian Committee on Energy, in which he stated:
‘The currencies used can be different and it’s a normal practice. If it’s Bitcoin, then it’s Bitcoin.’
The bulk of cryptocurrencies have been falling since the beginning of the year as traders react to geopolitical threats provided by the Russia-Ukraine war and the potential of financial tightening in the US.
On March 4, the global economic ramifications of the ongoing conflict in Ukraine weighed hard on the world’s financial markets, resulting in another day of seesaw price volatility for Bitcoin and the larger cryptocurrency market.
The Federal Reserve has raised interest rates for the first time since 2018, after months of vowing to deal with inflationary pressures in the United States in response to the Bank of England. This sparked a reaction from Bitcoin, but it quickly recovered.
Around the time of writing, Bitcoin was trading at $44600, up roughly 4% over the previous 24 hours.