Bitcoin in demand, bulls enjoy a 9% rise

Bitcoin rose as much as 9% after a sell-off over the weekend, on the expectation that cryptocurrencies could gain popularity due to Russian sanctions.

According to TradingView, the crypto market appears to have recovered after weeks of poor performance, with the price of Bitcoin (BTC) rising 14.5 percent in the past week to just over $43,000. At the time of publication, the world’s most popular digital currency was trading at approximately $41,200.

Bitcoin Price Rising As Russian Demand Soars

According to Marc van der Chijs of First Block Capital, the spike could be partly explained by Russians fleeing the ruble, which has plummeted under severe sanctions from the US and the EU.

On Monday, Van der Chijs said he saw bitcoin trading for up to $46,000 in some Russian markets, a $5,000 premium over US pricing.

vanderchijs said:

“Normally there is no difference” [between the Russian and US price of bitcoin] because there are arbitrage opportunities. That seems to indicate that this push for bitcoin price is a result of Russian purchases.

kaiko, a market data research firm for enterprises, noted that the Russian invasion of Ukraine has led to an increase in Bitcoin and stablecoin volume in both countries. Even outlier altcoins and memecoins with more volatility, such as Solana’s SOL, Terra’s LUNA and Dogecoin, surged higher Monday.

Russians concerned about the stability of the currency and banking system may view bitcoin as a method of safeguarding their savings.

BTC/USD is trading at $41k. Source: TradingView.com

Meanwhile, as countries around the world piled sanctions in response to Russia’s invasion of Ukraine, President Vladimir Putin issued counter-sanctions. In offshore trading, the ruble lost a third of its value at one point, its worst fall ever.

“Many Russian citizens and possibly Ukrainian citizens can’t move their rubles, dollars, euros or whatever,” said Anastasia Amoroso, chief investment strategist at iCapital.

“We are seeing some evidence of an increase in bitcoin ruble volume,” noted Blockchain.com research leader Garrick Hileman, warning that it was unclear whether Monday’s price movements could be fully attributed to such transactions.

Related literature | Battle Of The Hedges: How Gold And Bitcoin Have Performed With The Russia-Ukraine Conflict

Exchanges Limit Trading

According to data from crypto compliance company EllipticalBitcoin’s rise could be linked to consumers converting fiat into cryptocurrencies to donate to the Ukrainian military and charities, which have raised more than $22 million in crypto in the past five days.

It could also be due to non-war-related issues, such as a tight schedule, he noted.

Many prominent cryptocurrency exchanges, such as Coinbase and FTX, are not available in Russia. As a result, many Russians have resorted to Binance, a crypto exchange in the Cayman Islands that allows trade between the ruble and bitcoin.

Binance has agreed to block Russian users after Ukrainian Deputy Prime Minister Mykhailo Fedorov demanded this Sunday.

Related literature | Bitcoin falters after Putin’s nuclear deterrent warning

Featured image from Pixabay, chart from TradingView.com

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