Russians are paying up to $20,000 above market rate to buy Bitcoin – CryptoSlate

Welcome Bonus: Get up to $100 in BTC
Sanctions bite leading to the collapse of the ruble. Data suggests Russians are turning to Bitcoin to protect themselves from the fallout.
Cover art/illustration via CryptoSlate
Media outlet DeFiprime.com noted Bitcoin is trading for up to $20,000 above the market rate on Russian exchanges.
DeFiprime.com jokingly called this the “matreshka premium,” as a spin on the kimchi premium, which was a prevalent phenomenon from around 2016.
Matreshka premium is a new kimchi premium 👀 $BTC trading at Russian p2p exchanges/fiat on-ramps with about $20K premium right now 😱😱😱 pic.twitter.com/XnG3o4xcxG
— defiprime (@defiprime) March 1, 2022

“Matreshka,” or the matryoshka doll, are colorfully painted wooden dolls of decreasing size nestling inside another. It is perhaps the best-known symbol of Russia, representing respect for the elderly, family unity, fertility, abundance, and the search for truth and meaning.
Although “matreshka premium” doesn’t have the same ring as kimchi premium, the two exist for similar reasons.
The kimchi premium is a term used to describe the price difference between tokens on Korean exchanges compared to the rest of the world. The most significant difference was primarily seen in Bitcoin.
With the fermented cabbage dish being a Korean staple food, what better way to represent this situation?
Around 2016, North Korean leader Kim Jong-un was ramping up tensions in the region, including missile testing. Incidentally, missile launches have resumed in 2022, indicating a return to hostilities.
This led to capital controls restricting money flow into and out of Korea. The ensuing difficulties in moving money led to backlogged demand and a temporary boost in cryptocurrency prices.
“A rise in the kimchi premium can be an indicator of increased retail investment in Bitcoin by Korean investors.”
At the height of the kimchi premium, Bitcoin was trading for as high as 50% above the market rate. While it still exists today, it’s much less prevalent, coming in around 5%.
Likewise, tensions between neighboring Russia and Ukraine erupted in war last week. The resultant sanctions have excluded some Russian banks from the SWIFT global payment network.
Since then, the ruble has sunk to record lows against the dollar, with 1 ruble currently worth $0.01. In response, the Russian central bank has raised rates to 20% in a bid to counter hyperinflationary pressures.
The BTC/ruble pair has seen the highest trading volume since last May. Clara Medalie, Head of Kaiko Research, said hryvnia and ruble Bitcoin trading pairs have seen increased activity “magnitudes greater” than BTC/USD.
And with the fact a “matreshka premium” exists, it’s clear many Russians see Bitcoin as a safer bet than the ruble.
The outbreak of war last week sunk Bitcoin to $34,300. But a strong performance on Monday saw an 18% upside swing to close the day at $43,000.
Despite last week’s drawdown, the Bitcoin safe haven narrative remains intact.
Featuring a summary of the most important daily stories in the world of crypto, DeFi, NFTs and more.
Sanctions bite leading to the collapse of the ruble. Data suggests Russians are turning to Bitcoin to protect themselves from the fallout.
After recovering fairly well at the end of last week, bitcoin fell down below $39,000. Since then, the price of bitcoin has seen a strong recovery trading above 41,000.
The U.S. as well as the U.K. and several other European countries have agreed to ban a number of Russian banks from SWIFT.
Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.
Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Access more insights in every article as a member of CryptoSlate Edge.
Demand for Bitcoin on the Ethereum ecosystem has waned considerably since the start of this year.
On-chain metrics show a fall in demand and interest, as well as sell pressure coming from supply holding at a loss.
The phishing attack against users of the popular OpenSea NFT marketplace, was planned well ahead of the actual theft of user’s NFT. The attacker utilized both phishing email tactics and exploited dated smart contracts.
It has often been said that media firms should be open source and controlled by stakeholders like consumers, artists, and their intermediaries.
Got a story tip? Email [email protected]
Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy Policy. CryptoSlate has no affiliation or relationship with any coin, business, project or event unless explicitly stated otherwise. CryptoSlate is only an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence before making any investment decisions. CryptoSlate is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.
© 2022 CryptoSlate. All rights reserved. Terms | Privacy

source