Bitcoin Reaches Unforeseen Volumes Amidst Russia-Ukraine Conflict
The ongoing invasion of Ukraine by Russia has received global attention after lasting for nearly a week now. Surprisingly, the situation has provided the opportunity for cryptocurrencies to establish their utilitarian side. Even since the war was declared, many projects from the crypto space have extended their solidarity towards Ukraine. Bitcoin has been getting a larger portion of the attention amidst this crisis. The reason is the sudden hike in the trading volume of Bitcoin in Eastern Europe.
Bitcoin is undoubtedly the largest cryptocurrency in the market, with a whopping $800 billion market. Thanks to this number, BTC accounts for more than 50% of the entire market. The coin also posted an all-time value of $63,000 in 2021 after the crypto boom following the pandemic. However, there was a deep slide in BTC’s price, whose impact was even felt in the token’s current price. Now, tables seem to be turning as the conflict between the two Eastern European nations is getting fiercer every day. Following the declaration of war from Russia, BTC’s trading volume has been on the rise in the region and brought the price above $43,000. Follow this link to get more information about BTC’s price movement in the future.
Investors around the globe believe that this political situation will further escalate the price of Bitcoin. The need for a trustless, decentralised currency is even affecting the worldly governments in situations such as war. A report from Arcane Research claims that the trading volume levels have reached a 3-month high in just days since the invasion began. A whopping $10 billion BTC was traded last Thursday, making it the largest one day since December 4. This situation is dubbed by crypto experts as the “new narratives”, for it is establishing an unforeseen use case for cryptocurrencies as the local fiat currencies lose value.
Furthermore, Bitcoin also saw its biggest one day rise in more than a year following the ongoing issue. It happened last Monday when BTC climbed nearly 14.5% in just 24 hours. As Bitcoin is expected to further establish its position in the war as an “apolitical and trustless” money, investors speculate another significant rise that might go as high up as 15% in the next few days. Along with BTC, the USDT stablecoin purchase through Ukrainian hryvnia also increased to $8.5 million. Furthermore, the Ukrainian government received millions of dollars worth of cryptocurrencies from the fundraising rounds hosted by several NGOs.
Before the invasions, the Canadian Trucker protests and the subsequent declaration of emergency too have emphasized the importance of true decentralization. Now, financial institutions have been severely affected by the war and global policies in Ukraine and Russia, pushing their federal governments to take last resort in virtual currencies like Bitcoin to sustain the impacts of war.