As people seek ways to shield their hard-earned money from war-torn countries, the cryptocurrency craze is spreading to other European countries.
Don’t forget the data Kaiko’s crypto tracker shows that both ruble-to-crypto and Ukrainian hryvnia volumes have increased in the last few days to multi-month-highs.
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According to data, trading volumes for the pair rublebitcoin/RUB (BTC-RUB), are at historical highs. This level was last seen in May 2021.
The increase in Ruble-denominated Bitcoin (BTC) trade volumes is thanks largely to the recent strengthening of Russia’s currency.
Only days earlier, tougher economic measures were to be put into place. This effectively removed Russian banks from the SWIFT payment processing capabilities. BTC trades on local exchanges rose by 1.5 billion Rupees.
The same was true for investors in Ukraine. 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. The trading volume of tether-ruble, tetherhryvnia and ether-ruble had increased in relation to the invasion.
The cryptocurrency market has seen a dramatic increase in BTC/UAH and BTC/RUB pairs trading volumes. Binance, LocalBitcoins and Coinbase are some of the largest exchanges to witness this. These exchanges allow for peer–to-peer exchanges.
Fiat Failure Against Bitcoin
Investors flee Russia in large numbers, seeking safety where they can. 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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For a while now, buy-side pressure was already there. People want gold, US Treasuries and USD. Bitcoin prices were also high at $40,000, but they continue to decline alongside stocks. There’s no telling what will happen next in this crazy cryptocurrency world.
Russian citizens are clamouring for protection as their currency has fallen in value. In response, the Central Bank adopted measures designed to defend against future depreciation or inflation.
This country is taking unusual steps to improve investor confidence by tightening its monetary policy. They’ve raised key interest rates from 9% all the way up 20%. They also ordered brokers to stop providing services to foreigners looking to buy securities.
Featured image taken from Pixabay. Chart from TradingView.com