Crypto market bounces back as Biden imposes sanctions on Russia
- President Joe Biden stated his country will impose economic sanctions in response to Russia’s invasion of Ukraine.
- The cryptocurrency market capitalization has seen a swift rebound, climbing 14%.
- However, wealthy individuals may be able to utilize cryptocurrencies to bypass sanctions.
US President Joe Biden said that the United States will block five of the biggest Russian banks following Russia’s attack on Ukraine. The cryptocurrency market has seen a rebound following new sanctions imposed on Russia.
US freezes assets of all major Russian banks
The United States will block five of the largest banks in Russia as well as freeze all assets they hold in America, worth over $1 trillion. President Joe Biden stated that despite multiple reports indicating a probable ejection of Russia from Swift, the international payment system, there are no expectations of such plans.
According to Biden, the United States’ sanctions imposed “exceed Swift,” and the American President stated that the US and the G7 leaders are in agreement to limit Russia’s ability to do business in US dollars, euros, pounds and yen.
The US is also targeting Russian commerce to limit the latter’s high-tech imports in half, hurting the country’s access to products and technology.
Biden further stated that economic sanctions and supplies are all that the US can provide to aid Ukraine currently. Troops will only get involved if Russia moves into NATO countries.
The entire cryptocurrency market capitalization has seen a swift rebound following Biden’s latest announcement of imposing sanctions on Russia. On February 24, the crypto market cap fell to a swing low at $1.15 trillion and quickly bounced back by 14% to $1.73 trillion on February 25.
Total Crypto Market Cap
Bitcoin price has managed to gain 16% following its recent drop below $35,000 as it recorded a swing low at $34,372.
However, the optimistic outlook for the markets could be short-lived. According to a report by Bloomberg, Russian billionaires could potentially circumvent any US sanctions by using cryptocurrencies to purchase goods and services and continue to make investments outside countries that are experiencing economic impacts due to the invasion.
Quantum Economics founder and CEO Mati Greenspan stated that if a wealthy individual is concerned that their assets may be frozen to sanctions, they can hold their wealth in the leading cryptocurrency to be protected from such actions.
Author
Sarah Tran
Independent Analyst
Sarah has closely followed the growth of blockchain technology and its adoption since 2016.
