The price of %Bitcoin ($BTC) jumped 13% overnight and moved back above $40,000 U.S. as volatility in the %Cryptocurrency market continues amid the Russian assault on Ukraine.
The price of the largest cryptocurrency rose 13% to $43,500.00 U.S. after hitting a high over the past 24 hours of $44,165.90, according to CoinDesk. That rally comes after cryptocurrency prices plunged last week as risk assets such as stocks sold off sharply following Russia’s invasion of Ukraine.
%Ethereum ($ETH), the second biggest cryptocurrency, saw its price rise nearly 11% to $2,922.86 U.S.
Bitcoin’s rally comes as the U.S., Canada and other countries impose further sanctions on Russia. Washington targeted Russia’s central bank, effectively prohibiting Americans from doing any business with the bank as well as freezing its assets within the U.S.
That comes on top of sanctions that have targeted oligarchs and Russia’s sovereign debt as well as moves aimed at cutting the country off from the global financial system.
Bitcoin advocates have long touted the cryptocurrency as “digital gold,” an asset that provides a haven for investors during times of turmoil or even as a potential hedge against inflation.
But Bitcoin has not performed that way. Instead, it has been more correlated to the movement of stock prices in recent days even as inflation continues to hit multi-year highs and the Russian military conflict roils global markets.
People have been donating cryptocurrencies to the Ukrainian government and military in recent days, and the latest rally has some market analysts saying that a bottom has now formed for both Bitcoin and Ethereum.