Cryptocurrencies and War in Ukraine: Bitcoin establishes itself as a safe haven

Since the start of the war in Ukraine and the various sanctions imposed by the European Union on Russia, the cryptocurrency market has been put to the test. After a plunge that sowed doubt among investors at the beginning of February, the market is finally recovering, notably after the Russian announcement regarding Bitcoin.

According to Lenin, war is an accelerator of history, but what will be its impact on the cryptocurrency market?

After a long period of uncertainty over Bitcoin at the very beginning of the year and the spectacular fall of the market during the Russian offensive against Ukraine, the crypto market is finally regaining color. Indeed, Bitcoin has risen to the threshold of 43,250 euros, an increase of more than 13% in five days.

Despite market uncertainty, speculators had suggested that cryptocurrencies could be used by Ukrainians and Russians to make international money transfers quickly and securely. And it is clear that this is indeed the case. kyiv and NGOs supporting the Ukrainian population raised no less than 24 million dollars, of which approximately 42% in Bitcoins, 38% in Etherum and the rest in Stablecoin, mainly USDC. According to the Elliptic firm, specializing in Blockchain, some accounts have even recorded movements exceeding a million dollars.

On February 26, the Ukrainian government relayed the official address of their BTC and ETH wallets on Twitter by launching an international appeal for donations. This initiative had a direct and rapid impact on the market incidence rate and also pushed the massive adoption of cryptocurrency even within the local population.

A lire également  Arbismart: A cryptocurrency poised to dethrone Bitcoin?

bitcoin dollar

Russians also rely on Bitcoin to protect their financial assets.
Although since the start of the conflict the ruble has suffered a fall against the dollar now exceeding 20%, ruble > bitcoin exchanges show a clear increase, thus suggesting a strong rise in the crypto star in the weeks and months to come. Exchanges mainly take place on the Binance platform, which did not fail to provoke a reaction from Mykhailo Fedorov, the Ukrainian Minister of Digital Transformation, who asked platforms to ban transfers from Russian addresses. At this request, Binance officially announced that it could not take the request into account.

Despite all these explanations, supposed to partly explain the meteoric rise of the cryptocurrency market, many commentators emphasize the fact that this upward trend is ultimately the effect of liquidations of futures positions and the resumption of the “rally” . For now, crypto-investors are hoping for a recovery beyond 62,000 euros, the ceiling reached last November, but the road ahead remains long and still strewn with uncertainties.