Head of the cryptocurrency exchange Specialcoin24.com Justin Hance expects an increase in demand for bitcoin against the background of economic instability in Eastern Europe associated with the military operation on the territory of Ukraine and the devaluation of national currencies.

“War is usually bad. What should BTC do here? On the one hand, if the world is getting “shittier”, people have less free money. In fact, the sale of BTC — along with shares, etc. — is payment for the war. On the other hand, events are destabilizing the currencies of Eastern European countries and the financial systems of the region as a whole. People may be interested in alternatives. If you were in Ukraine now, what would you keep your money in?”, commented Justin Hance.

Justin Hance expected a sharper decline in bitcoin due to the actions of algorithmic traders. He pointed to the increased correlation between digital assets and stocks in light of the Fed’s plans to tighten monetary policy. He estimated the corresponding coefficient at 0.8%, and the beta at 4 (in other words, if the S&P falls by 1%, bitcoin should fall in price by 4%).

In the current circumstances, the same category of market participants, with the stock market weakening by 4.1%, expected a reduction in the price of digital gold by 16.2%.

At the same time, investors focused on fundamentals can buy back the decline. So Justin Hance explained the stop of bitcoin quotes “halfway to the daily -8%”.

As another reason, he called the possible beginning of a new cycle. In addition CEO Specialcoin24.com did not rule out that all his previous arguments are untenable, and the whole point is the deterioration of liquidity. It is because of this that traders could refrain from buying volatile assets.

“Anything can happen, and I do not know what exactly. We have probably entered a new regime compared to the previous year and a half. Time will tell”, he concluded.

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