Bitcoin Exchange Reserve Reaches a 3.5 Year Low
Bitcoin exchange reserve has reached a 3.5 year low, according to CryptoQuant. Despite the Ukraine-Russia woes, few Bitcoins have made their way to exchanges for panic sell-off. This move shows that the current market participants are strong hodlers and likely to continue hodling. It is worth mentioning that market participants have been accumulating even at lower boundaries of price movements ranging from $32k to $45k.
Bitcoin Volume Spikes
According to crypto data provider Kaiko, trading volumes in Bitcoin using the ruble have risen to the most significant level since May, while those based in Ukraine’s hryvnia have increased to a level not seen since October.
“The trend follows a wave of sanctions against Russia, which has disrupted forex markets and caused the ruble to sink to record lows against the dollar,” said Clara Medalie, head of Kaiko.
The invasion of Ukraine and its capital by Moscow has put a pall over global markets, prompting a run to safe-haven assets. As the association between the world’s largest cryptocurrency and the US stock market has become more assertive in recent months, the perception of Bitcoin as “digital gold” has weakened. But that remains true, as seen by a Bitcoin bubble spurred by Turkey’s currency crisis.
Bitcoin Recovers From Last Week’s Fall
According to CoinMarketCap data, bitcoin is presently trading above $40,000 for the first time since February 20. The price is currently at $43,000, indicating a nearly 14 percent increase in the previous 24 hours. There has also been an 18 percent increase in the last week—a time marked by market volatility due to Russia’s invasion of Ukraine.
Bitcoin’s price tumbled along with the rest of the crypto market following Russia’s invasion, which began on February 24. In the first 24 hours of the conflict, the cryptocurrency market fell by approximately 5% to a capitalization of $1.6 trillion. The Bitcoin price dropped from $37,000 to below $35,500 in less than half an hour. Ethereum has followed the trend and has increased 11% over the last day to $2,903 after falling last week.
There were a lot of markets that suffered, not just the crypto markets. The Dow Jones Industrial Average, for example, plummeted 1.3 percent to enter correction territory in the United States.
Bitcoin Ahead of Russian Ruble
For the first time, FiatMarketCap’s data shows bitcoin above the Russian ruble as investors flee Russian assets under heavy global sanctions.
On Saturday, the government announced that Russia would no longer use SWIFT’s interbank messaging service. Moreover, the bank would have its assets confiscated to stabilize the ruble, Russia more than doubled its interest rate to 20%.
“Russia is entering a full financial crisis,” Bilal Hafeez, the chief executive of financial analysis platform Macro Hive, said in emailed comments, “the ruble is collapsing.”
A wave of sanctions against Russia has led to the currency sinking to record lows against the dollar due to disruptions in forex markets.
Appeal for Bitcoin Donations
The bitcoin price has also risen due to Ukraine’s viral request for bitcoin and cryptocurrency donations. According to on-chain statistics verified by blockchain research company Elliptic, contributions to the country have already surpassed $20 million.
The market is welcoming the rising demand for crypto in Ukraine according to Yuya Hasegawa, crypto market analyst at Bitbank. He also added that reports of Russian bank runs are reminiscent of the Cyprus shock back in 2013, which sent the price of bitcoin significantly higher.
Hasegawa said that if Russia-Ukraine peace negotiations fail, bitcoin’s price may continue the Sunday decline and break below $37,000.
