GB Market Commentary 15/02/2022
by Marcus Sotiriou
Bitcoin held the 50-day moving average mentioned in yesterday’s market note and reacted with a strong bounce of around 5%. This could be in part due to less fear surrounding the Russia-Ukraine crisis, as Russia is removing some troops to base from the Ukrainian border. The threat remains however, as a report has emerged of US intelligence claiming that Russia may invade tomorrow with a missile blitz and 200,000 troops.
Why is there political unrest in Canada and how is crypto caught in the crossfire?
In addition to a potential war on the horizon, political unrest has materialised in Canada, with crypto at the centre of it. In retaliation to COVID restrictions, truckers have come together to form a blockade at important chokepoints around the country to prevent the flow of goods – ‘the Freedom Convoy’. This has resulted in major manufacturers shutting down. Millions of dollars have been donated to the movement. However, the Canadian government has not only removed all donations, but they are also freezing the individual truckers’ accounts.
Provoked Bitcoin holders have donated over $800,000 in Bitcoin to the cause, bypassing the traditional legacy systems and presumably making it to the truckers. This story is a significant advertisement for Bitcoin, a way of transferring value that cannot be shut down by a single entity or government. In this situation, where one of the most progressive countries in the world decided to deny banking access to its citizens without any democratic procedures, Bitcoin was the solution.