BTC gains as ‘Ukraine crisis shows crypto’s appeal to West’
09:15, 2 March 2022
Bitcoin (BTC) held its gains following the boost it got on Monday, which also marked the crypto king’s trajectory in diverging from equities.
As the main virtual token, BTC briefly broke $45,000 mark in European afternoon trade.
Cryptocurrencies are continuing to play a prominent role in the Russia–Ukraine war, and may indeed find their own place in the sun the emerging post-sanctions financial system.
Following the rouble’s (RUB’s) sanctions-sparked plunge, in which the currency lost some 30%, Russians took to BTC en masse instead of relying on the rouble.
Chart of the day:
Chart showing surges in rouble-denominated BTC volumes – Credit: CryptoCompareThe spike in demand was followed by price hikes in bitcoin and other digital assets.
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Could crypto take over as a safe-haven currency?
The amount of Russians fleeing to the cryptocurency as a safe haven in the midst of their own currency crisis has showcased the potential value and security of cryptocurrency use to the world, market watchers noted.
“The geopolitical crisis in Eastern Europe has illustrated the value proposition that crypto has for those affected by international conflicts, which leave millions of people unable to access the traditional financial system,” David Moreno Darocas, research analyst at cryptocurrency market provider CryptoCompare, points out.
Says Darocas: “The ability to store wealth in a decentralised store of value previously had little appeal to many in the Western world – which is why a significant chunk of crypto activity comes from developing nations such as Nigeria and Vietnam.
“[However,] “the latest events have shown that everyone is, to a certain extent, vulnerable from issues in the traditional banking system.”
Darocas also hints at Canada’s move in a attempt to cut the Freedom Convoy 2022 – the weeks-long trucker-led protests against vaccine mandates – from supporters’ donations.
He said: “This is also currently relevant in Canada, where the Emergencies Act now allows the Canadian government to freeze an individual’s bank accounts without any legal warrant or court order.”
Quote of the day:
Nayib Bukele, president of El Salvador, the first country that adopted bitcoin as a legal tender in September, tweeted the below:
The intrinsic value of #Bitcoin is now in full display on the whole world.
— Nayib Bukele ???????? (@nayibbukele) March 1, 2022
Top cryptocurrency coins by market capitalisation
As of 15:00 UTC:
- Bitcoin (BTC) was up by 1.6 and trading at $44,658;
- Ether (ETH) added 1.0% to $3,009; and
- Binance coin (BNB) climbed by 1.8% to $$412.
Winners and losers
Altcoins fantom (FTM) and terra (LUNA)) were among the biggest daily movers among major cryptocurrencies, adding 9.2% and 8.3% respectively.
Helium (HNT) was down by 4.4% day-on-day
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