Any notion that Russia’s invasion of Ukraine will boost the entire crypto market at the expense of the US dollar is likely off-base, according to Chamath Palihapitiya.
The billionaire venture investor is updating his thoughts on Bitcoin and the digital asset economy on Twitter.
He believes it’s now best to view both BTC and the US dollar in a narrow lens by tracking their relative strength alongside direct competitors.
“Conventional wisdom is that the war in Ukraine is the crypto boon we’ve all been waiting for and that the USD is on its last legs. But in reality, BTC and USD are both winning right now. Here’s a more nuanced take…
BTC is separating itself as an institutional grade safe haven vs EVERY other crypto asset AND the US denominated assets are well bid vs assets in other currencies.
When BTC falls, other cryptos fall more. When US assets fall, other non-US denominated assets/currencies get smoked.”
Bitcoin’s dominance of the overall cryptocurrency market cap has jumped from about 39% in mid-January to 43% at time of publishing, according to the latest data from TradingView.
MicroStrategy CEO Michael Saylor says the world will increasingly recognize Bitcoin’s unrivaled level of decentralization and its increasing adoption as an easily transferrable and verifiably scarce digital asset.
If you don't fear inflation, regulation, war, famine, complexity, competition, corruption, coercion, confiscation, or chaos, then you don't need #bitcoin.
— Michael Saylor?? (@saylor) March 7, 2022
With Bitcoin trading in a range of about $34,500 to $45,000 in 2022, on-chain metrics are showing some of BTC’s strength behind the scenes.
The latest data from Glassnode, highlighted by Documenting Bitcoin, shows there are now a record 40 million addresses holding BTC.
In addition, Bitcoin’s hash rate, which essentially highlights how much computing power is dedicated to the network, hit an all-time high in mid-February and remains in a steady uptrend since hitting a low in July of last year.
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Featured Image: Shutterstock/Mia Stendal
