In the midst of the ongoing conflict between Russia and Ukraine, Bitcoin is now more valuable than the Russian Ruble in terms of market valuation. According to Coinmarketcap data comparing Bitcoin to major fiat currencies, the asset class has risen two places in the latest ranking, overtaking the Ruble and Thai Baht.
The greatest cryptocurrency, Bitcoin, has a market capitalization of 18,990,072 BTC ($779.66 billion), whereas the Russian Ruble has a market capitalization of 16,462,964 BTC ($675.90 billion).
According to the most recent rankings, Bitcoin is ranked 14th among the world’s most valuable currencies, just behind the Swiss Franc.
This comes as a number of countries, including the US, prepare a round of penalties against Russia as President Vladimir Putin’s country pursues its invasion of Ukraine.
Bitcoin is up 5%, breaking above the $40,000 resistance, after suffering massive losses in the early hours of President Putin’s proclamation of an invasion on Ukraine.
The cryptocurrency is now trading about $41,000 across numerous markets at the time of writing this article, up 5% in the last 24 hours. Throughout the battle, the cryptocurrency has been called into action, with some cryptocurrency fans making BTC donations to Ukrainian NGOs in an effort to help the country.
The rise in Bitcoin was attributed to Russians buying the cryptocurrency to send their money out of the country. “Bitcoin was established for the same goal, acting as a store of value on the one hand and allowing for quick and free transactions on the other. Both of these services are now displayed. Because of the ruble’s depreciation, many Russians are turning to Bitcoin.
Ukraine’s government has also announced that Bitcoin will be accepted as a form of payment. “This is a very good use case where governments are looking at cryptos during such a crisis and people can give anonymously,” said Sathvik Vishwanath, co-founder of Unocoin.
“I would not be a buyer, but if I was a Russian I would be a buyer,” veteran investor and founding partner of Mobius Capital Partners Mark Mobius told CNBC on Tuesday. “I would say that’s the reason why bitcoin has shown strength now — because the Russians have a way of getting money out, getting their wealth out,” he added.
Over $10 million in BTC has been raised as of today, with other cryptocurrency supporters, such as Binance CZ, expressing interest in increasing the donations in the coming days.
Analysts from Grayscale Investments, an asset management firm, evaluated the factors driving pricing today and shared their thoughts. Risky assets like Bitcoin have traditionally bottomed soon before the onset of wars, according to the experts, thus a new boom is likely.
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Also read: Despite Ukraine’s request, Binance says it would not block all Russian accounts
