The cryptocurrency craze has spread to countries across Europe as people search for ways to protect their money from war-torn nations.
Data from the crypto tracking site Kaiko shows that ruble and Ukrainian hryvnia-to-crypto volumes have shot up in recent days, reaching multi-month highs.
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The data show that trading volumes in the ruble-bitcoin (BTC-RUB) pair are at historic high levels. Last time we saw the same level was in May 2021.
The increase in Ruble-denominated Bitcoin (BTC) trade volumes is thanks largely to the recent strengthening of Russia’s currency.
On February 24th, just days before tougher economic sanctions were set to go into effect and effectively cut off Russian banks from SWIFT system payments processing capabilities. As a result, BTC traded on local exchanges skyrocketed by 1.5 billion RUB.
Investors in Ukraine were equally nervous. The bitcoin-Ukrainian hryvnia (BTC-UAH) pair spikes over the week, even though still low according to Kaiko’s Medalie, who said that traders have been coming into buying cryptocurrency as a hedge against potential economic chaos caused by Western sanctions.
It seems that the markets are taking notice of what’s going on 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 been experiencing a massive increase in BTC-RUB and BTC-UAH pairs trading volume. Some of the biggest exchanges where this can be seen include Binance and LocalBitcoins, which allow for peer-to-peer Bitcoin exchange.
Fiat Failing Against Bitcoin
Investors are running from Russia in droves, looking for safety wherever they can find it. The rising volumes reflect a major rush of people seeking protection as fears about the country’s economy grow along with worries over sanctions and what could happen if things get worse – including echoes across Eastern Europe caused by these international issues.
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The buy-side pressure has been coming for a few days now. It seems like gold, US Treasuries, USD, or Swiss Francs are among the assets people want. Bitcoin also saw high prices near $40,000 but continues to fall alongside stocks. There’s no telling what will happen next in this crazy cryptocurrency world.
With the falling value of their currency, Russian citizens have been pushing for protection. As a result, the Central Bank has moved to adopt measures meant in defense against further depreciation and inflation hits.
The country has taken unusual steps in an effort to tighten its monetary policy and increase investor confidence. They’ve raised key interest rates from 9% all the way up 20%. Additionally, they ordered local brokers not to provide services for foreigners seeking to sell securities as well banned any advertisements related to cryptocurrency trading.
Featured image from Pixabay, Chart from TradingView.com