Despite the upheaval in the global markets, Bitcoin rose to a two-week high on Tuesday due to a spike in buying by Russians and Ukrainians who may be seeking safety in cryptocurrency as their fiat currencies deteriorated.
According to CoinMarketCap, Bitcoin was up 13.8 per cent in the last 24 hours to $43,618, while ETHER, the native currency of Ethereum, was up 10.7 per cent to $2,915.
ETHER & Altcoins Like Terra, Avalanche Increased Dramatically
By mid-February, the two largest cryptocurrencies by market size were trading at their highest levels. At the same time, altcoins, notably smart-contract enabled networks like Terra, Cardano, and Avalanche, recovered substantially after collapsing with the commencement of the Russia-Ukraine conflict.
Terra’s token LUNA was last up 26 per cent on the day at roughly $93.40, while Cardano gained 9 per cent and avalanche gained around 16 per cent in the previous 24 hours.
Following its invasion of Ukraine, Russia has practically been locked out of the international financial system, causing the currency to hit historic lows and the value of the country’s most significant firms to plummet.
Russia Ukraine News: Russians, Ukrainians Utilize Cryptocurrency a Means of Value Transfer
According to Kaiko, trade volumes in Bitcoin denominated in Russian roubles have hit their best since last May, while FXEmpire reported that Ukrainian crypto exchange Kuna’s daily trading volume has more than tripled.
According to DailyFX, Russian domination and those concerned about the impact of economic sanctions might shift to cryptocurrency due to its apparent isolation from the traditional banking system.
Over the weekend, Bitcoin’s attraction as a way of transferring wealth into Ukraine was evident, as Bitcoin contributions soared and the country’s official Twitter account pleaded for help via Bitcoin, Ethereum, and Tether.
According to Bea O’Carroll, managing director of Radkl:
“Maybe this is how Russia gets its value moved around. Equally, on the other side, there was ‘this is how people are going to get value to the Ukrainians’,” she said.
The war in Ukraine and sanctions placed on Russia have resulted in the usage of Bitcoin to move wealth, including millions of dollars in cryptocurrency donations.