Ukrainians are embracing bitcoin for everyday purchases as its central bank cuts traditional payment rails. As of March 4, $57 million had been donated for military assistance in Ukraine. Although Russian Bitcoin transactions have grown as the BTC/RUB pair trades $62 million, the BTC price does not appear to have changed. Bitcoin is up around 9 percent in February, having recovered from its January low and distinguishing itself from other risky assets.
According to NYDIG’s February report, Ukrainian military aid continues to pour in by the millions as Russian Bitcoin transactions escalate. As of March 4, $57 million had been donated for military assistance in Ukraine.
Although Russian Bitcoin transactions have grown as the BTC/RUB pair trades $62 million, the BTC price does not appear to have changed. Bitcoin is up around 9% in February, having recovered from its January low and distinguishing itself from other risky assets.
As Ukraine’s central bank eliminates traditional payment channels, Ukrainians have adopted bitcoin for regular purchases.
As the Russian invasion continues, NYDIG, a financial firm specializing in institutional-grade Bitcoin solutions, released its February 2022 Bitcoin Brief report, which covers relevant statistics about bitcoin as an asset, compares it to other financial products, and delves into Bitcoin metrics in Ukraine.
In response to cultural and geopolitical concerns, the NYDIG study noted that “nearly 113,000 digital asset donations were given directly to the government or an NGO offering military support in just seven days.” According to the report, the total worth of gifts had reached $57 million as of March 4.
According to the study, “the National Bank of Ukraine froze the foreign exchange market, limited cash withdrawals, and prohibited the usage of fiat currencies via digital platforms like Venmo or PayPal,” prompting Ukrainians to embrace bitcoin for everyday purchases.
“Since the invasion began through March 4, the bitcoin/ruble pair has exchanged roughly $62 [million] in volume on Binance (Russia’s largest crypto exchange), while the market cap of bitcoin has climbed by $75 [billion,” NYDIG wrote as the invasion continues. “These are not comparable data,” they said at the end.
In February, Bitcoin rose by roughly 9%, deviating from the norm as other risky assets fell into negative territory. When bitcoin, along with other risky assets, fell in January, this argument was reinforced.
Over the last month, Bitcoin has outperformed other major assets (8.96 percent), with gold trailing closely behind (6.22 percent ). The P2P currency, on the other hand, has delivered returns orders of magnitude greater than both gold and the S&P 500 over a five-year period.
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Also read: Ukraine has received $108 million in cryptocurrency donations
