(Coinquora) Bitcoin overtook the Russian ruble after a crypto market surge occurred alongside the crash of the mentioned fiat currency. Bitcoin reached above $44,000 earlier today, having traded below $35,000 only the previous week. The surge of crypto and the crash of the ruble is a result of the recent Ukraine invasion.
The Russian ruble crashed for a record low of 118 per dollar earlier today. Furthermore, Nikolai Arefiev, Vice Chairman of the Duma’s Committee on Economic Policy, said last week that Russia might confiscate rubles from citizens in the event of an economic collapse.
As a result, people are clamoring for assets such as Gold, US Treasuries, the US dollar, and the Swiss franc.
Consequently, trading volumes between Bitcoin and the ruble increased to a nine-month high. Kaiko, a Paris-based crypto research provider, tracked data showing that ruble (RUB)-denominated bitcoin volumes surged to nearly 1.5 billion RUB on Thursday.
This exchange pair hit its highest level since May 2021.
Kaiko’s Head of Research, Clara Medalie explained that the trend followed the wave of sanctions against Russia. Medalie added that the sanctions had disrupted forex markets, causing the ruble to sink to record lows against the dollar.
Similarly, Macro Hive CEO Bilal Hafeez said that the above actions could see Russia embrace crypto to avoid sanctions. Therefore, Hafeez adds, western regulations of crypto could accelerate in response to the possibility.
Meanwhile, Bitbank Crypto Market Analyst Yuya Hasegawa observed the following about the current state of Russia and crypto.
Putin’s order to put the Russian nuclear deterrence force on high alert shook the crypto market on Sunday, but some news regarding large crypto donations to the Ukrainian forces and the rising demand for crypto in Ukraine are being welcomed by the market.
Additionally, Hasegawa warned that if the Russian and Ukrainian peace talks fail, the bitcoin price “could extend the Sunday loss and break below $37,000.”
