The effects of the war on the crypto markets
The digital currency market is now valued again at over $ 2 trillion for the first time since last August. The value of digital currencies soared in recent days as Bitcoin was traded at the time of writing for $ 44,179.07 per unit, and its market value is estimated at $ 838.1 billion. Atherium is currently trading at $ 3,012.42 per unit.
Although currencies are trading at much lower rates than the peaks at which they were traded earlier last November (then Bitcoin traded for $ 69,000), these are still higher than a week ago, the start of the war in Ukraine, and the fall in the value of cryptocurrencies allowed many investors to buy The same coins at cheaper prices than before.
Also, the current crisis indicates some correlation between currency values and geopolitical ties. This correlation is reflected in the fact that the Ukrainian government has currently raised over $ 35 million in digital currencies, according to a report received by Time News.
The same funds were raised by the Ukrainians and allegedly transferred to private organizations within Ukraine, many of which are used for the purposes of transferring military equipment, medical equipment, development of facial recognition applications, etc.
Ukraine is not the only one doing this of course, when the Russians themselves are also looking for alternatives to liquid money. On the other hand, the reason for the Russians is different, when they try to make the liquid money digital and thus evade the effects of Western sanctions on them, especially after disconnecting local financial entities from the global clearing system, SWIFT, and the fact that many central banks do not trade cryptocurrencies at all.
If so, the digital currency market is strengthening in the current crisis, compared to the stock markets that have become very volatile in recent days, when the same is true for commodities like gold, the US dollar. On the other hand, US bonds are reacting against this trend, especially when the fighting in Eastern Europe has raised investors’ fears that the Federal Reserve’s upcoming interest rate decision will actually be lower than previously thought, due to rising commodity prices that increase inflationary pressures.
The prices of other commodities, such as oil and wheat, are also rising, with many market participants not yet knowing exactly how the crisis will affect these resources. As you may recall, Russia is one of the largest oil exporters in the world, a figure that is also true of Ukraine’s wheat exports.
The number of cryptocurrencies in the world in which over 1,000 coins have soared recently
According to recent reports in the Ethereum World News, the number of cryptocurrencies in which more than 1,000 Bitcoin coins have recently jumped.
It is likely that the increase in the number of wallets of this type did not increase as a result of a certain increase in the number of Bitcoin currencies currently on the market, but rather a simple transfer of existing Bitcoin assets to new addresses. The price of a thousand Bitcoin coins is estimated today at close to $ 45 million.
It is therefore difficult to argue that all these wallets are actually attributed to Ukraine or Russia, since these have so far raised much lower sums, and that this is a global phenomenon for which there is as yet no real explanation.
How much tax profit can Russia charge on cryptocurrencies?
An investigation conducted by the Russian news agency The Bell revealed the following data. The Russian crypto market is currently estimated at 16.5 trillion rubles, currently worth $ 214 billion. On the other hand, at this stage the Russian authorities – including the central bank – are not sure what taxes will be imposed on trade in these currencies.
The report showed that as of last year, close to 12% of the total market value of digital currencies was attributed to the Russian market, and that close to 10% of all currency traders within Russia (12 million in number) used foreign exchanges to trade currencies.
This report came up recently because last week, the Russian Trade Authority suggested that the local Ministry of Finance recognize crypto as a real business, this after the report data showed that 15% of Russian GDP is crypto.