BRICS Challenge US Dollar, Can They Impact Bitcoin Too?

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Bitcoin could be thrust into uncharted territory as the BRICS challenge the US Dollar. Assess the potential outcome for Bitcoin if BRICS succeeds.

An interesting thing is happening on the world stage and it could well be one of the main factors that could influence the demand for Bitcoin later this year. A battle is being waged against the dollar and this could jeopardize its status as a global reserve.

How much are 1,10,100 BTC worth today?

Geopolitical tensions are also bringing the battle to the economic front. Russia and China are working to roll out a new common global currency called BRICS in alliance with many other countries.

Geopolitical tensions are also bringing the battle to the economic front with the BRICS as an alternative to the dollar. This development has the potential to have a massive impact globally, but what does this mean for Bitcoin?

If the BRICS are successful and manage to attract more countries, then the US dollar could lose its grip as the world’s reserve currency.

Such an outcome can potentially put the dollar on the fast track to losing even more value. Bitcoin could benefit from higher demand as people adopt other ways to hold value.

The USD could also face more pressure and less demand from investors due to the current debt situation and recession fears.

Meanwhile, Bitcoin is about to wrap up a bullish first month of 2023. And so far, addresses that have been buying seem to be holding their coins. Glassnode Alerts confirmed this about Bitcoin supply activity;

#Bitcoin $BTC Supply Amount Last 1d-1s activity (1d MA) just hit a 1-month high of 490,925.339 BTC

The previous one-month high of 489,165.093 BTC was observed on January 23, 2023

View metric: https://t.co/8VrSovS3cQ pic.twitter.com/wkSBnBxxeF

— glassnode alerts (@glassnodealerts) January 29, 2023

The Bitcoin Volatility Index has pivoted in favor of the upside since Jan. 20. This suggests that Bitcoin could be heading 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 greenback outflows.

Bitcoin has shown resilience against the downside so far. Its latest rally confirms strong demand and weak selling pressure as investors opt to hold their coins.

This allowed BTC to approach the $24,000 price range. It was trading at $23,750 at press time.

Source: Trading View

Can the BRICS take advantage of Bitcoin from a blockchain perspective?

There have been reports claiming that banks in BRICS member states are exploring the potential implementation of blockchain.

Although this may still be in the realm of speculation, it could be a strong move for BRICS member countries.

This is good news for Bitcoin as it will underline robust efficiency and speed. This would not only give the BRICS a competitive advantage, but also facilitate their use as a reserve.

Not going the blockchain route will likely put the BRICS at a disadvantage now that more countries are exploring this technology.

BTC could interact with the BRICS on its own turf. The potential implications can turn out to be quite interesting, especially for Bitcoin’s long-term outlook.

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