This is another consequence of the Russian-Ukrainian war. The price of the Russian ruble has fallen sharply in recent days, so that the capitalization of Bitcoin (BTC) now far exceeds that of the RUB. At the same time, purchases of BTC in Russian rouble have exploded.
Bitcoin capitalization exceeds that of the Russian ruble
As we explained yesterday, Moscow is already feeling the first consequences of the sanctions applied by the international community. And perhaps the most telling is the catastrophic fall of the Russian ruble, which hit its lowest level in history yesterday.
As a result, the capitalisation of the RUB has also plummeted, allowing the capitalisation of BTC to overtake it. According to CoinMarketCap data, the Russian rouble is now only 17th in the ranking of most capitalised currencies. Bitcoin is 14th:
Currency capitalisation comparison with Bitcoin (Source: CoinMarketCap)
This means that the largest cryptocurrency now outweighs the ruble, and the trend is likely to continue if the international community’s determination to strangle Russia economically is anything to go by.
BTC purchases in ruble explode
The other side of this is that Bitcoin purchases with the Russian fiat currency have risen sharply. According to data reported by the analytics site Kaiko, the BTC/RUB pair has seen its volumes explode, as has the USDT/RUB pair:
Volumes of BTC/RUB and USDT/RUB (Source: Kaiko Data)
As Kaiko notes, the Ukrainian national currency is also affected by this increase in volumes:
“The volumes of the rouble and hryvnia have risen to levels not seen for months, almost immediately after the Russian invasion. This highlights the complexity of the cryptocurrency industry’s role in the conflict. “
A premium for BTC on Ukrainian exchanges
The majority of these exchanges are taking place on Binance. Several publications have also noted that Bitcoin is trading at a higher price on exchanges accessible by Ukrainians. On average, the price of one BTC was 6% higher. On the Kuna platform, Bitcoin has exceeded $42,100 in recent days.
This morning, one BTC is trading for 1401474 hryvnias (UAH) on Binance, which is the equivalent of $46,600. For comparison, the price of BTC is $43,500 on a price aggregator like CoinGecko.
So this shows the appetite of both Russians and Ukrainians for cryptocurrency, as their national currencies fall, or are difficult to access.
