Bitcoin trading volumes against the Russian currency have reached their new all-time high in over a year. At the same time, people using Ukraine’s hryvnia hit new highs in October 2021.
What Happened as a Result of the Embargoes?
NATO and the EU have remained neutral in a direct military battle and have promised not to send soldiers to Ukraine. They did, however, put significant monetary sanctions on Russia to destabilise it and disrupt its financial ties with the West.
The embargoes impacted devastation on Russia’s economy, particularly its national currency. In just 24 hours, the ruble lost over 25% of its value.
In contrast to fiat money, cryptocurrency market data source – Kaiko reported that Bitcoin is gaining popularity in the region despite the sanctions.
Bitcoin trading volumes against the ruble achieved an all-time high since May 2021, while those in Ukrainian hryvnia surpassed the October high. Clara Medalie, the head of Kaiko research, spoke on the subject:
“The trend follows a wave of sanctions against Russia, which has disrupted forex markets and caused the ruble to sink to records law against the dollar.”
Medalie also remarked that Bitcoin’s general trading volume had increased significantly in the recent seven days. She went on to say that the increased activity for BTC/UAH and BTC/RUB trading pairings was “magnitudes greater” than for BTC/USD.
According to experts, the region’s financial uncertainties may force Russians to transfer their money into digital assets potentially. On that topic, Ukraine’s Vice Prime Minister has encouraged cryptocurrency exchanges to freeze the addresses of Russian-based customers.
Jesse Powell, CEO of Kraken, underlined that Bitcoin represents libertarian ideas, and hence his firm cannot ban consumers’ accounts without a legal mandate. He also believed that many Russian-based consumers would be opposed to the conflict.
It SeemsThat Bitcoin Trading Volumes Are Gaining Traction After Reaching An All-Time High
During the Ukraine conflict, the world turned to an extraordinary weapon: cryptocurrency.
On Saturday, Ukraine’s official Twitter account provided digital wallet addresses where individuals could deposit Bitcoin and Ethereum, among other digital assets, in an unusual move.
Meanwhile, a nonprofit organisation in Ukraine called Come Back Alive raised $4 million in cryptocurrency to help fund its efforts to provide military equipment and medical supplies to the country.
However, in true crypto tradition, crypto enthusiasts have mobilised to help Ukraine outside of official influence.
Countries with a significant interest in Bitcoin and pro-crypto initiatives, according to a Substack article by crypto influencer Anthony Pompliano, “will have a significant advantage.” For global superpowers, Bitcoin “will be essential for decades to come,” he said.