When the sounds of war echo, is Bitcoin worth its weight in gold? The bizarre logic of Bitcoin skyrocketing after Odessa was bombed!
This morning's news reported that Russian drones bombed Odessa again, resulting in 1 dead and many injured, with buildings collapsed. Logically, shouldn't there be panic during a war? Shouldn't gold rise? Guess what? Bitcoin is surging towards 107k! Isn't that surreal? Don't rush, let me explain the 'logic of the crypto circle' behind this.
1. Panic? Not at all, we in the crypto circle love to 'buy the dip'!
As soon as the news of the war broke, there were indeed newbies panicking and selling off, but the veterans' eyes lit up! Think back to when Iran and Israel were fighting; Bitcoin first dropped and then skyrocketed. Why? When panic selling occurs, cheap chips are eagerly grabbed by large institutions, especially those ETF giants! This is not the first time Odessa has been bombed; the market is somewhat 'numb' and instead sees it as a buying opportunity.
2. Short on cash due to sanctions? The Bitcoin chain is bubbling with activity!
Ukraine's ports and military factories are being prioritized, while traditional finance is in shambles. What about the Russians? If you want to buy something 'special' and can't use dollars or euros, what to do? Cryptocurrency has become the underground hard currency! As on-chain activities become active, demand is implicitly pushed up; this 'digital gold' title is not just for show.
3. Fed Chair Powell is being 'hard-headed', and after Trump’s outburst, the crypto circle sees hope!
A couple of days ago, the Fed refused to budge on interest rates, and the market was lifeless. Then Trump jumped out to blast Powell for 'losing money for America'! The crypto circle immediately caught the scent: political pressure is coming, and interest rate cuts might be ahead! With the dollar weakening, Bitcoin, as an 'anti-inflation' asset, immediately perked up. Plus, if oil prices explode due to war, inflation will return, and Bitcoin might actually become a 'lifeline'.
4. The technical side has been pent up for a long time, just waiting for a spark!
Bitcoin has been hovering around 103k-108k for almost a month and a half, and the candlestick patterns are twisted like a pretzel! Below 104k, there are institutional buy orders propping it up, and it can't drop. As soon as the news from Odessa came, it dipped slightly, and when the RSI entered the oversold zone, the shorts were crushed, and leveraged long positions were frantically covered, causing the price to 'pop' back up!
So, this surge is a 'dissipation of panic + hidden demand from war + expectations of policy easing + pent-up technical breakout' quartet! The market is always counterintuitive; what you think is bad news might just be a bell for the big players to feast!
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