BRICS Challenge US Dollar, Could It Impact Bitcoin Too?
- Bitcoin may be plunged into uncharted territory as BRICS challenges the US dollar.
- Considering the potential outcome for Bitcoin if BRICS succeeds.
An interesting thing is happening on the global stage, and it may just be one of the most important factors that could affect Bitcoin demand later this year. A battle is being waged against the dollar, and this could challenge its global reserve status.
How much is 1,10,100 BTC worth today?
Geopolitical tensions are also taking the battle to the economic front. Russia and China are in joint efforts to roll out a new common global currency called BRICS in alliance with a number of other nations.
Geopolitical tensions are also taking the battle to the economic front with BRICS as an alternative to the dollar. This development could potentially cause a massive impact globally, but what does this mean for Bitcoin?
If BRICS takes hold and manages to attract more countries, the US dollar could lose its grip as the global reserve currency.
Such an outcome could potentially put the dollar on a fast track to lose even more value. Bitcoin may be in higher demand as people embrace other ways to hold value.
The USD may also face more pressure and less demand from investors due to the debt situation and fears of a recession.
Meanwhile, Bitcoin is ending a bullish first month of 2023. And so far, those addresses that bought seem to be holding on to their coins. Glassnode Alerts confirmed this about Bitcoin supply activity;
📈 #Bitcoin $BTC Supply volume last active 1d-1w (1d MA) just hit a one month high of 490,925,339 BTC
Previous 1-month high of 489,165,093 BTC was observed on January 23, 2023
See calculation: pic.twitter.com/wkSBnBxxeF
— glassnode alerts (@glassnodealerts) 29 January 2023
Bitcoin’s volatility index has swung in favor of the upside since January 20. This suggests that Bitcoin may be headed for more volatile price movements in early February.
Source: Glassnode
The resurgence of confidence in Bitcoin bulls is perfectly timed to absorb some of the liquidity from the dollar exit.
Bitcoin has so far shown resilience against the downside. The latest rally confirms the strong demand and low selling pressure as investors choose to hold on to their coins.
This allowed BTC to push closer to the $24,000 price range. It was trading at $23,750 at press time.
Source: TradingView
Can BRICS benefit from Bitcoin from a blockchain perspective?
There have been reports claiming that banks in BRICS member countries are exploring potential blockchain implementation.
While this may still be within the realm of speculation, it could be a strong move for the BRICS member countries.
This is good news for Bitcoin because it will emphasize robust efficiency and speed. It will not only give BRICS a competitive advantage, but also make it easier to use as a reserve.
Not going the blockchain route is likely to put the BRICS at a disadvantage now that more countries are exploring this technology.
BTC can interact with BRICS on their home turf. The potential implications could turn out to be quite interesting, especially for Bitcoin’s long-term outlook.
