Bitcoin Soared To Nearly $45k As Russia Considered BTC For Oil Move

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Bitcoin broke above key resistance levels to hit all-time highs last seen in February, with the rally supported by several macro factors.

Bitcoin has gained 10% in the past week, climbing to its highest price level since February 24, when it briefly traded above $45,000.

On Friday, the Bitcoin (BTC-USD) pair rose more than 4% in intraday gains to reach highs just above the $45k price point. The pair has since retreated but continues to bid well above $44,700 at the time of writing.

Do Kwon’s $3 Billion BTC Plan Gives Bulls Legs

The lead cryptocurrency’s advantage follows weeks of ranged trading, with relief mounting in the past month, tempered by risk-off sentiment sparked by the Russia-Ukraine war and the impact of rising inflation on stocks.

But according to GlobalBlock analyst Marcus Sotiriou, the upside this week got legs from the hype surrounding new accumulation by Terra Labs founder and CEO Do Kwon.

Kwon, who recently placed two bets worth $11 million on a price of Terra (LUNA) set to exceed $90 by March next year, has unveiled a “$3 billion Bitcoin accumulation plan.”

Sotiriou points to Do Kwon and Terra’s Bitcoin reserve purchases as key to the buying pressure for BTC and Ethereum (ETH), which topped $3,100 for the first time in weeks.

‘PetroBitcoin’ Sentiment Helps BTC Move to $45k. to climb

This week’s big jump above recent resistance and testing of $45,000 was also helped on Thursday by sentiment surrounding Russia’s announcement that it would accept Bitcoin from “friendly” countries for its oil and gas. These countries would also pay in their local currency, such as the yuan or the Turkish lira.

“In addition to the bullish story behind Bitcoin being used as a stablecoin reserve asset, there are now talks of a Petro Bitcoin rather than a Petro Dollar,” Sotiriou noted in email comments.

He says this probably added a new story to BTC’s price movement. Russia’s switch to Bitcoin for oil and gas exports is indicative of the cryptocurrency’s “ideological malleability.” It’s not just about Russia, it’s about a wider promotion of the fact that crypto is “unstoppable”.

The big question, according to Sotiriou, is whether PetroBitcoin is ready to replace PetroDollar. Can countries start pricing oil in Bitcoin and not the US dollar?

Bitcoin has surged more than 30% since its sell-off to a low of $33,000 shortly after the Russian invasion of Ukraine.

BlackRock and Exxon news

BlackRock CEO Larry Fink said Thursday that the wealth manager, the world’s largest with more than $10 trillion in assets under management, is considering crypto services for its clients. According to Fink, the demand for crypto capabilities among its clients has increased, which is something the investment giant was looking into.

Elsewhere, Texas-based gas giant Exxon is mining Bitcoin using excess gas in a move that is expected to see about “18 million cubic feet of gas” used each month to mine BTC. The gas, which would otherwise be flared, thus contributes to environmentally friendly mining.

Exxon’s Bitcoin mining operation is bullish for the cryptocurrency, Sotiriou said in a commentary. He believes this will likely attract many institutional investors, as Bitcoin’s $845 market cap “seems so undervalued to many.”

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