Bloomberg Intelligence says that Russia’s invasion of Ukraine could aid in driving up the prices of Bitcoin (BTC) and Ethereum (ETH).
In the March edition of Crypto Outlook, the research arm of media giant Bloomberg says that the energy price hikes caused by the current geopolitical crisis in Eastern Europe could help Bitcoin evolve as a new asset class.
“The Russia-Ukraine conflict may mark another step in Bitcoin’s maturation toward becoming the global digital collateral. Spiking energy prices are a reminder of the benefits of embracing technology, and North America achieving the status of net fossil-fuel exporter.
Supply, demand, adoption and human ingenuity point to Bitcoin regaining the upper hand vs. crude oil in 2022.”
The report says that the tension will also boost the value of Ethereum, the leading platform for deploying smart contracts and decentralized applications.
“The war in Ukraine may enhance the value of digital-asset stalwarts Bitcoin and Ethereum and the proliferation of crypto dollars. The No. 1 and 2 cryptos are showing divergent strength vs. equities, facing greater risks to recession and spiking energy prices. The Russia-Ukraine conflict could boost dollar dominance via crypto tokens.
The war in Ukraine may accentuate the value of decentralized, immutable digital assets. If the conflict is resolved soon, most risk assets should gain buoyancy, with Ethereum set to keep rolling.”
Bloomberg intelligence also gives a bullish forecast for stablecoins such as the fiat-backed USD Coin (USDC) and the algorithmic stablecoin Terra USD (UST), which saw 2,069% and 5,323% growth in total value locked (TVL) in 2021, respectively.
“Stablecoins are also emerging as a systematically important venue for global liquidity representing 0.53% of central bank balance sheets despite unprecedented levels of [quarterly earnings].
If Stablecoins repeat last year’s growth they will exceed 2.3% by 2023.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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