Hong Kong
CNN Business
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Cryptocurrency Prices Are Climbing After Russia’s Ruble Falls to another record low and was struck with Moscow new restrictions,
As of 5:25 AM on Tuesday, Bitcoin is up 13% According to Cryptocurrency Tracker, up to $43,163 in the last 24 hours coindesk,
Other cryptocurrencies also moved higher. Ethereum climbs 10% on Tuesday $2,878. Dogecoin rose nearly 6% to around 13 cents.
Virtual currencies have traditionally been viewed as a riskier bet, but as traditional As geopolitical tensions cause assets to curb or experience greater volatility, some analysts believe they will. get more traction,
According to Arcane Research, an Oslo-based cryptocurrency research firm, the trading volume between the ruble and cryptocurrencies has picked up in recent days. One of the largest cryptocurrency exchanges in the world.
Investors appear to be “trying to get out of the ruble” due to the “huge devaluation after all sanctions”. said Bendik Shei, head of research at Arcane.
Schee said that more people are switching to Tether instead of Bitcoin. While bitcoin is the world’s most valuable cryptocurrency, Tether is known as a “stable currency” Since it is pegged to the US dollar.
“It’s where they find the most comfort at the moment,” Schee said of investors. “Under current market conditions, I am not surprised to see investors, at least in Russia, looking for stablecoins… it is about saving their funds, not investing.”
Over the past week, Tether has largely remained stable at around $1.
The scramble came as the ruble fell on Monday, trading at US$104. There was a slight change on Tuesday morning.
Western powers have frozen the assets of Russia’s central bank to make it difficult for Russia to reduce the influence of sanctions on some of its biggest lenders and other companies.
Steps have been taken to prevent Russia from accessing the “rainy day funds” officials said Moscow was hoping to rely on during its invasion of Ukraine. Instead of using reserves to buffer a falling ruble, Russia will no longer have access to many of the funds held in US dollars.
In addition to providing investors with a relatively safe haven, cryptocurrencies may provide a way for Russians to evade sanctions, according to some experts.
US and EU sanctions rely heavily on banks to enforce the rules. If an accepted business or individual wishes to transact in traditional currencies such as dollars or euros, it is the responsibility of the bank to flag and block those transactions.
But digital currencies operate outside the realm of standard global banking, in which transactions are recorded in a public ledger called a blockchain.
, Allison Morrow, Nikki Carvajal, Jeremy Diamond, Kevin Liptak and Kate Sullivan contributed to this report.