Bitcoin Volumes Rise as the Ruble Drops

The cryptocurrency craze has spread to countries across Europe as people look for ways to protect their money from war-torn countries.

Facts from crypto-tracking site Kaiko shows that ruble and Ukrainian hryvnia-to-crypto volumes have risen in recent days, reaching several months high.

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

The data shows that trading volumes in the ruble-bitcoin (BTC-RUB) pair are at an all-time high. The last time we saw the same level was in May 2021.

The increase in ruble-denominated Bitcoin (BTC) trading volumes is largely due to the recent strengthening of the Russian currency.

On February 24, just days before tougher economic sanctions would come into effect and Russian banks would be effectively cut off from the payment processing capabilities of the SWIFT system. As a result, BTC shot up 1.5 billion RUB on local exchanges.

Investors in Ukraine were equally nervous. The bitcoin-Ukrainian hryvnia (BTC-UAH) pair spiked over the course of the week, although still low according to Kaiko’s Medal, which said traders have started buying cryptocurrency as a hedge against potential economic chaos caused by Western sanctions.

It seems that the markets are taking note of what is happening in Eastern Europe. Tether ruble and tether hryvnia trading volumes had also increased relative to an invasion.

Bitcoin added almost 10% to its value today | Source: BTC/USD chart on Tradingview.com

Recently, the cryptocurrency world has experienced a massive increase in the trading volume of BTC-RUB and BTC-UAH pairs. Some of the biggest exchanges where this can be seen are Binance and LocalBitcoins, which allow peer-to-peer Bitcoin exchange.

Fiat Fails Against Bitcoin

Investors are fleeing Russia en masse, seeking security wherever they can find it. The rising volumes reflect a large influx of people seeking protection as fears over the country’s economy mount, along with concerns over sanctions and what could happen if things get worse – including echoes in Eastern Europe caused by these international problems.

Related literature | TA: Why Bitcoin Must Close Above $40K For Trend Reversal?

The pressure on the buy side has been going on for a few days now. It seems that gold, US Treasury bonds, USD or Swiss Francs are among the assets people want. Bitcoin also saw high prices near $40,000, but continues to fall alongside equities. There is no telling what will happen next in this crazy cryptocurrency world.

With the decreasing value of their currency, Russian citizens have been pushing for protection. As a result, the Central Bank has taken measures to defend against further depreciation and inflation.

The country has taken unusual steps to tighten its monetary policy and boost investor confidence. They have increased key interest rates from 9% to 20%. In addition, they have ordered local brokers not to provide services to foreigners seeking to sell securities, and have also banned all advertisements related to cryptocurrency trading.

Featured image from Pixabay, chart from TradingView.com

Leave a Comment