The price of Bitcoin surged on Tuesday for a second consecutive day, despite the selloff in other risk assets, as Russia’s invasion of Ukraine buoys cryptocurrency transactions in those countries, partially in response to the sweeping sanctions from the U.S. and other world powers. So are markets essentially cheering the dodging of sanctions? Is good news for crypto actually bad news for the world?
It’s not as simple as that. Ruble-denominated crypto trading pairs have jumped since the U.S. announced its first sanctions on Russia on Feb. 22, according to research firm Chainalysis. As the researchers wrote on Twitter, it’s possible some of that may represent illicit funds. Hryvnia-based crypto trading also jumped initially, although the increased volume has been less persistent. According to Chainalysis, the volumes “could also be driven by individuals in both countries reacting to the recent devaluation of the ruble and hryvnia and attempting to preserve their savings.” Bitcoin has climbed about 11% since Friday, and Ether is up 8% even as stocks and other risk assets have slipped.
