| Assaf Elmaleh, Senior Financial Crypto Analyst at Proxibit Investment House |
The digital currency market has been boiling for the past day. E, whose price as of this writing (Tuesday morning) stands at $ 43,400, thus erasing the declines of the past week almost completely. It seems that the reason for the sharp rise is due to a jump in activity in the Bitcoin currency, against the background of the war in Ukraine and the economic sanctions on Russia and the expectation of investors around the world that this trend, of the jump in activity, will continue.
Research companies in the field of digital currencies provide data indicating a sharp increase in the volume of bitcoin trading against the Russian ruble. Over the last few days, the trading volume broke a record of 9 months – 1.5 billion rubles on Thursday alone. With the caution required, it has been said that this increase in value may indicate an increasing attitude of investors towards Bitcoin as a value-preserving asset, especially in crisis situations. However, the path of bitcoin to becoming “digital gold” is still a long one.
Trading in the Russian ruble against the USDT, the stable currency (stablecoin) linked to the dollar, also recorded a sharp increase in trading volumes and reached a peak of 8 months.
Stable digital currencies are currencies that aim to be worth the dollar at any given moment, and do so by backing up the digital currencies in real dollars and various assets. The stable coins are undoubtedly stars in this period – they are easy to use and retain their value.
A digital currency named is one of those projects that created an entire ecosystem of digital currencies linked to political currencies. The LUNA currency, which drives this ecosystem, has soared by no less than 80% in the past week.
The value of the Russian ruble, which depreciated nearly 40% on the last trading day, indicates what is known to many around the world: At a time of uncertainty and a combination of rising inflation, money is losing its power – and Russian investors seem to be looking for alternatives.
Both warring parties are trying to take advantage of digital currencies: on the one hand, Russian oligarchs are exploiting the power of digital currencies as easily transferable assets internationally for the purpose of evading economic sanctions. On the other hand, Ukraine harnesses the power of digital currencies and posts an ad on the country’s official Twitter account with the addresses of the digital wallets to which donations can be transferred – it has raised no less than $ 10 million in 24 hours.
Bottom line, expect a lot of volatility in the coming weeks. Global events create a layer of uncertainty that will undoubtedly be interpreted in the digital currency market as well.
The author is Assaf Elmaleh, a senior financial crypto analyst at Proxibit. There is nothing in the website for advice and / or marketing of investments and / or tax advice and there is no substitute for such services that take into account the data and the special needs of each person. The website does not contain any recommendation regarding the viability of investing in virtual currencies and / or any financial products or instruments, nor does it contain any order and / or offer to perform operations in the products mentioned. This does not constitute an obligation to bear any return. Investing in virtual currencies is risky and can result in a loss of full investment. The field of virtual currencies involves regulatory, taxation and application uncertainty by various entities with which interactions are required for the purpose of performing operations.