Is There a Pattern to the Uptick in the Price of Bitcoin on Sunday?

The world's most popular cryptocurrency is benefiting from a number of positive developments.

What went wrong?

All in all, cryptocurrencies had a terrific weekend, led by Bitcoin, the world's most popular virtual currency ( BTC 5.38 percent ). Over the course of 24 hours on Sunday, the token that sparked the creation of thousands of new cryptocurrencies had gained roughly 5%. On the heels of a slew of positive news stories about Bitcoin and cryptocurrencies in general.

What's the deal?

In the wake of the Ukraine conflict and its direct economic consequences, many investors are discarding their skepticism. Many people get nervous when such things happen. The tendency of investors to flee risky assets and invest in more stable investments is a result of their nervousness.

Investors are returning to more speculative positions now that the new reality has been accepted. This has a beneficial impact on the bitcoin market as a whole.

There have been a number of positive developments for Bitcoin in recent days. Russia's State Duma energy committee head Pavel Zavalny said late last week that his country would allow "friendly" countries to pay for its oil with cryptocurrency, mentioning Bitcoin by name in his remarks.

The sanctions imposed on the country as a result of the war have forced the government to announce that it will only conduct such sales in rubles.

Luna Foundation Guard, a non-profit aimed to "promot[ing] a truly decentralized economy," also uses Bitcoin as a reserve currency. Do Kwon, the director of the Luna Foundation and CEO of Terraform Labs, the company that created the Terra coin and the TerraUSD stablecoin, is the brains behind Terraform Labs.

The Bitcoin reserves of the Foundation have grown dramatically. Over the weekend, several media publications claimed that the Foundation's Bitcoin wallet has grown by around $1.1 billion in the last few days.

bitcoin
Bitcoin reserves on cryptocurrency exchanges are low across the board. Source: CryptoQuant.

Now what?

In what appears to be a genuine rebound, investors who were previously wary of Bitcoin are returning to the cryptocurrency. However, it's still early in the game, and how risk-averse investors will be in the following days and months will have a significant impact.

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