Geopolitical concerns drive Bitcoin activity to its greatest level in over two years
Bitcoin (BTC) recovered almost as quickly as it had plunged after Russia’s invasion of Ukraine last week.
Russia was recently sanctioned as a result of the invasion, with the nation being kicked from the SWIFT payment system in order to “paralyse” its central bank’s assets. As a consequence, the quantity of active Bitcoin has increased to around 565,000 BTC, as measured by 24-hour movement as of March 3.
Notably, this is the greatest amount of active Bitcoin supply in over a year. Indeed, only two occasions, “Black Thursday” in March 2020 and May 2020, have seen a greater spike in activity, according to data from research platform Delphi Digital.
Around the globe, a sell-off erupted as a consequence of the Russian ruble’s isolation from the rest of the world’s financial system, culminating in a 20% drop in the currency’s value over the weekend.
“As Russians want to safeguard their currency’s worth, BTC has emerged as one possibility. This resulted in a whopping 40% premium for BTC.”
The trading volume of (RUB/BTC) reaches a nine-month high
As a consequence of the West’s sanctions against Russia, the volume of ruble-denominated crypto trade started to soar.
Russian ruble-to-Bitcoin (RUB/BTC) trade volumes hit a nine-month high on Monday, February 28, as the country’s fiat currency dropped to record lows after the imposition of sanctions on Russia’s central bank.
On February 24, the volume of Bitcoin denominated in RUB hit about 1.5 billion RUB, the biggest level since May 2021, as investors hurried to withdraw their funds in anticipation of harsher penalties being applied.
The West intensified its targeted sanctions on Russia, with the goal of preventing Russian banks from joining the Society for Worldwide Interbank Financial Telecommunications (SWIFT), the worldwide financial transactions network.
In the recent week, on-chain data has indicated a significant spike in Bitcoin accumulation that began in late February, as reported by internet entrepreneur and expert Lex Moskovski, who revealed that the number of so-called accumulation wallets hit a new all-time high on March 1.
Similarly, when the price of Bitcoin increases, the number of Bitcoin addresses grows significantly, suggesting that regular investors are becoming interested in the market.