BTC volume increased to a level that had not been invisible for three months; Against the background of the Russian invasion of Ukraine. According to the latest weekly updated report from Arcane Research, BTC’s actual daily trading volume exceeded $10 billion last Thursday; This marks the highest daily volume recorded since December 4. The firm named new crypto narratives that come to the fore in the current crisis; Such as attracting crypto funds to Ukraine; With the growing demand for the Western bloc and Russia introducing the most challenging capital controls in decades. Intense pressure from investors to sell on February 24 may also have contributed to the increase in BTC daily volume; Because the price fell by 10% that day.
As a rule, the actual trade volume indicates the data obtained on the exchanges; Which are likely to be reputable and free from trading activities. Arcane Research extracted its figures from the Bitwise 10 exchanges and LMAX and FTX.
For comparison, Coingecko received data from more than 500 exchanges; BTC’s trading volume on February 24 was about $25 billion. The BTC volume chart shows a similar picture to Arcane; A value of about $11.6 billion was recorded last Thursday. As of February 24, accurate daily BTC volume to approximately $7.5 billion as of March.
Russia-Ukraine War and BTC
Arcane Research also noted that the BTC price on February 28 recorded the most significant daily percentage increase in more than a year; In 24 hours, the price increased by 14.5%. The firm attributed this increase to the adoption of Russian and Ukrainian cryptocurrencies. Also increased speculation about the use of cryptocurrencies in the light of the current Russian invasion: Investors predict that crypto will become more critical apolitical and credible money in times of geopolitical uncertainty, conflict, and escalation of capital controls. This speculation may have contributed to a 15% increase in the price of Bitcoin in the last seven days.
The use of cryptocurrencies has been affected by severe financial disruptions in both Russia and Ukraine and markets. The report cites data from last month that show a significant increase in cryptocurrencies for Ukrainian citizens. Around the time of Russia’s full-scale invasion on February 24, daily purchases on Binance through Ukrainian hryvnia increased from about $2.5 million to $8.5 million. While the BTC/UAH chart showed a similar trajectory, it grew from about $1 million to $3.0 million during this time. A similar phenomenon occurred in Russia, with USDT ruble-based purchases rising from $15 million to $34.94 million on February 28. Daily bitcoin purchases also jumped from $5 million to $15 million.
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