Geopolitical Tensions Drive Bitcoin Activity to Highest Level in Nearly 2 Years

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Bitcoin (BTC) has rebounded almost as quickly as it fell after its initial plunge in response to Russia’s invasion of Ukraine last week.

The latest round of sanctions against Russia following the invasion saw the country kicked out of the SWIFT payment system, in order to “cripple” its central bank assets. As a result, this had a ripple effect on the active Bitcoin supply, which reached around 565,000 BTC, as determined by the 24-hour movement on March 3.

Notably, this is the highest active Bitcoin supply seen in over a year. In fact, only two events saw a higher increase in activity, “Black Thursday” in March 2020 and May 2020, according to Data from the Delphi Digital search platform.

BTC supply activity at highest since May 2020. Source: Delphi Digital

Across the world, a sell-off ensued following the decoupling of the Russian ruble from the rest of the global financial system, causing the currency’s value to drop 20% over the weekend.

Delphi Digital highlighted:

“As the Russians try to preserve value, BTC has emerged as one of the options. This has caused BTC to trade at a jaw-dropping 40% premium.”

(RUB/BTC) trading volumes hit nine-month high

Following the Western sanctions imposed on Russia, the volume of ruble-denominated crypto transactions began to rise accordingly.

In particular, Russian Ruble to Bitcoin (RUB/BTC) trading volumes hit a nine-month high as the country’s fiat currency fell to record lows amid central bank sanctions. of Russia, the country’s ruble fell to an all-time low on Monday, February 28.

On February 24, the volume of RUB-denominated Bitcoin reached around 1.5 billion RUB, the highest level since May 2021, as investors rushed to transfer their money out of the currency in anticipation of the implementation of more severe penalties.

BTC-RUB daily volume. Source: Kaiko

The West has stepped up targeted sanctions against Russia, intended to block Russian banks from accessing the Society for Worldwide Interbank Financial Telecommunications (SWIFT), the communications network that underpins global financial transactions. .

Over the past week, on-chain data shows a major surge in Bitcoin hoarding that began in late February, revealed by expert Internet entrepreneur Lex Moskovsky who showed that the number of so-called hoarding wallets hit a new all-time high as of March 1.

Likewise, the number of Bitcoin addresses is increasing rapidly as the price also increases, indicating that retail investors are interested in the market.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.

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