Bitcoin overtakes Russian Ruble – The Independent

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
Crypto price rises 20 per cent since Russia invaded Ukraine, while Russia’s currency crashes 25 per cent
Find your bookmarks in your Independent Premium section, under my profile
Bitcoin has overtaken the Russian Ruble after a crypto market surge coincided with Russia’s currency crashing.
The cryptocurrency reached above $41,000 on Monday afternoon, according to CoinMarketCap’s price index, having traded below $35,000 as recently as Thursday.
Follow our live coverage of the crypto market
The Ruble fell by around 25 per cent in that same time period, dropping below $0.01 on Monday to a new record low.
The fiat currency’s crash came amid increased sanctions against Russia over its invasion of Ukraine, with the West introducing restrictions for some Russian banks to the SWIFT global bank payments system.
The latest bitcoin price surge was partly fuelled by people exchanging Rubles to the cryptocurrency, according to some market analysts, who said the cryptocurrency served as a store-of-value during times of geopolitical and economic uncertainty.
“In these uncertain times, we have seen an uptick in the utility of bitcoin and other cryptocurrencies,” Paolo Ardoino, CTO of the crypto exchange BitFinex, told The Independent.
“It goes without saying the defining characteristics of bitcoin allows it to act as a safe haven during turbulent times.”
Earlier on Monday, Russian crypto exchange BestChange.ru went offline, leading to speculation that it was either the result of hackers, or due to a flood of users attempting to buy bitcoin and other cryptocurrencies with Rubles.
In response to Western sanctions, Russia’s central bank more than doubled interest rates to 20 per cent on Monday.
“External conditions for the Russian economy have changed dramatically,” the Bank of Russia said in a statement.
“An increase in the key rate will make it possible to ensure an increase in deposit rates to the levels necessary to compensate for the increased devaluation and inflation risks. This will help maintain financial and price stability and protect citizens’ savings from depreciation.”
Registration is a free and easy way to support our truly independent journalism
By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists
{{#verifyErrors}} {{message}} {{/verifyErrors}} {{^verifyErrors}} {{message}} {{/verifyErrors}}

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.
This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.
Already have an account? sign in
By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.
This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.
Join thought-provoking conversations, follow other Independent readers and see their replies
The market cap of BTC overtook the Russian Ruble on 28 February, 2022, following severe economic sanctions imposed after Russia invaded Ukraine
Getty Images

Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
Log in
New to The Independent?
Or if you would prefer:
Want an ad-free experience?

source