Why did Bitcoin rally above US$44k? Market strategist Sven Henrich tweets four reasons
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A double surge saw Bitcoin (BTC) add 15 per cent in the past 24 hours, even in the face of rising geopolitical turmoil. But why? Sven Henrich, founder of NorthmanTrader has some thoughts.
Henrich, an American market analyst who frequently shares his views on the CNBC and CNN channels’ various financial programs, yesterday tweeted out four reasons why he believes Bitcoin pumped.
Why #Bitcoin is rallying in the face of this crisis.
4 reasons in my view:
— Sven Henrich (@NorthmanTrader) February 28, 2022
“Fundamental: Adoption [and] acceptance continues to expand, i.e eBay but also institutional,” noted Henrich. “This path will continue in my view. There is no sign of regression, but continued expansion.”
eBay is the latest corporate/commercial giant to show interest in crypto. Earlier this week, its CEO Jamie Iannone reportedly indicated the e-commerce behemoth could be pivoting towards enabling cryptocurrency payments on the platform as soon as March.
Meanwhile, institutional adoption continues apace on a global scale. A growing number of financial institutions, including BNY Mellon, Fidelity, BlackRock, Mastercard, Visa, and the Commonwealth Bank have either already introduced crypto-related offerings or have expressed intention to do so.
“Sentiment: The Ukraine crisis highlights how Bitcoin can act as a support mechanism to raise funds when traditional avenues are cut off,” added Henrich. “Blockchain [and] decentralized money to become more relevant.”
At the time of writing, according to data released by Cointelegraph, Ukraine’s government, military and charitable organisations have received more than US$37k in tracked crypto donations. Meanwhile various prominent crypto entities are also committing funds, including Binance (a minimum of US$10m) and Polkadot’s Gavin Wood (a US$5m pledge).
Stand with the people of Ukraine. Now accepting cryptocurrency donations. Bitcoin, Ethereum and USDT.
BTC – 357a3So9CbsNfBBgFYACGvxxS6tMaDoa1P
ETH and USDT (ERC-20) – 0x165CD37b4C644C2921454429E7F9358d18A45e14
— Ukraine / Україна (@Ukraine) February 26, 2022
“Technical: Bitcoin made a higher low versus equities in February showing a positive divergence [and] defence of a key trend. Start of correlation decoupling process? Safety Trade: Sanctioned money may seek Bitcoin as a safe haven (unconfirmed). This also invites risk as it gives excuse to accelerate regulation (long term positive/short term risk).”
Bitcoin a safe haven? Gold bug Peter Schiff would strongly disagree. But, as fellow trader and analyst Rekt Capital points out, the technicals do indeed look strong for the OG crypto asset once more, posting a bullish monthly candle close for February.
— Rekt Capital (@rektcapital) March 1, 2022
And finally, regarding his “Saftey Trade” thesis, Henrich reasoned that Bitcoin “is here to stay” amid an increasingly unstable traditional monetary system.
“The rationale for [Bitcoin’s] existence finding more validation as the existing fiat world requires ever more intervention to stay afloat,” wrote the analyst.
At the time of writing, Bitcoin is changing hands for US$43,576 and appears to be consolidating, having flattened out somewhat over the past 12 hours or so after its dramatic double pump.