Bitcoin serves two distinct roles in the global economy: facilitating oil sales in Russia to bypass sanctions, while in the US, investors pull funds from ETFs despite high prices.
Russia's Use of Bitcoin for Oil Trade
Russian oil companies have found a way to continue selling oil to countries like China and India using cryptocurrencies such as Bitcoin, Ethereum, and Tether. This method circumvents sanctions and allows $192 billion worth of oil trade to continue, even under Western trade barriers. In 2024, Russia introduced new laws to facilitate the use of cryptocurrencies for international business.
US Bitcoin ETFs Losing Despite High Prices
US Bitcoin ETFs have lost $870 million over the past week, despite high cryptocurrency prices. Experts attribute this to 'renewed selling pressure,' while Bitcoin remains around $85,000. Investors are concerned about the global economic situation and events, driving them to withdraw funds from these investments.
Bitcoin's Connecting Role in Global Events
These two scenarios are connected through the role Bitcoin plays globally: in Russia, it addresses practical issues by facilitating cross-border transactions; in the US, it acts as a volatile investment. Thus, Bitcoin is both a practical tool for global trade and an investment asset with high volatility.
These developments highlight Bitcoin's evolving dual identity: a practical solution for international trade challenges and a complex investment vehicle with unique market behaviors. As these use cases develop, Bitcoin's significance at the intersection of geopolitics and finance will grow.
