Bitcoin: Trading volume on crypto exchanges explodes in Ukraine
In the context of this tense situation where uncertainties weigh on the future of the monetary and financial system of Ukraine, cryptocurrencies in particular bitcoin are subject to increased demand while the value of the hryvnia collapses.
Daily cryptocurrency trading volume is growing at a dizzying rate in Ukraine. According to data provided by data aggregator, Coingecko, the trading volume on Luna, a crypto exchange in the country has increased by more than 200% in the last 3 hours.
This appetite of Ukrainians for cryptocurrencies comes in a context where the Ukrainian Central Bank has imposed a limit on hryvnia withdrawals at 100,000 UAH ($3,353) per day and banned cross-border chats and withdrawals of foreign currencies.
Bitcoin Stands As An Alternative To The Ukrainian Currency
Apart from the hryvnia withdrawal limitations, the deterioration of its value has pushed citizens towards an alternative safe haven although cryptocurrencies, in part bitcoin, are not at their high levels.
The hryvnia rate against the US dollar (UAH/USD) fell to 0.3349, its lowest level (All Time Low). On a monthly basis, the value of (UAH/USD) has already fallen by 6.37%.
It should be noted that in parallel the ruble of Russia experienced this same downward effect. The price of the ruble plunged to its lowest levels against the US dollar in this context of war. Between the beginning of February at the time of writing this article, the price of the RUBUSD pair fell from $0.0133 to $0.0112, a decrease of 15.78%.
In parallel with this decline, the Ukrainians rushed into cryptocurrencies. According to what Coingecko reported, daily bitcoin trading volumes on Kuna went from $775,000 to $4.1 million in just three days.
A War-Proof BTC Course
It was believed that the context of the war would cause bitcoin to pullback below $30,000. After touching the $34,000 zone, the first cryptocurrency in the market quickly recovered and is currently trading at $39,305.
The whales seem to join the party. According to the graph the pseudonymous Material Indicators analyst shared on twitter, whales fueled bitcoin’s recent rebound from the dip below $35,000.
Purple #whales are leading the charge. Historically, this class has had the most direct correlation to the price of #Bitcoin. If #BTC bulls can push past $41.5k, then $45k should be in sight pretty soon.