Bitcoin is now more valuable than the Russian Ruble amid price recovery

Bitcoin was the 14th most valuable currency in the world with a market cap of 18,974,439 BTC, ahead of Russian Ruble ranked 17th with an m-cap of 14,369,230 BTC.

bitcoin prices
The Bitcoin rally was attributed to Russians purchasing the cryptocurrency to get their wealth out. (Image: pexels)

The ongoing geopolitical crisis with Russia’s attack on Ukraine and unprecedented sanctions triggered by the West, which sent the ruble into freefall, is perhaps helping Bitcoin get more prominent in the global financial system. Bitcoin has now become more valuable than Russia’s fiat currency ruble in the global ranking of currencies by market cap. According to CoinMarketCap data, with the recovery in the crypto market as Bitcoin prices bounced back by nearly 15 per cent in the past 24 hours and 16 per cent in the past seven days, the biggest crypto surpassed ruble. Bitcoin was currently trading at $43,106, up from around $37,500 last Tuesday.

The fiat currency had dropped around 30 per cent to less than 1 US cent on Monday after the European Union, the US, France, the United Kingdom and other Western nations introduced restrictions to block key Russian banks from the SWIFT payment system, among other measures. Currently, 1 Ruble is equivalent to $0.010 or Rs 0.76. 

Bitcoin was the 14th most valuable currency in the world with a market cap of 18,974,439 BTC, ahead of Russian Ruble ranked 17th with an m-cap of 14,369,230 BTC, as per CoinMarketCap.com. Swiss Franc with 28,894,665 BTC m-cap was ranked 13th while Indian Rupee with an m-cap of 61,302,711 BTC was ranked seventh. 

Also read: Bitcoin, Ethereum wallets with at least 0.01 BTC, ETH balance hit all-time high

The Bitcoin rally was attributed to Russians purchasing the cryptocurrency to get their wealth out. “Bitcoin was created for the same purpose where it acts as a store of value on one side and also to enable fast and free transactions on the other side. Both these utilities are becoming visible now. A lot of people in Russia are going in for Bitcoin due to the ruble drop. Ukraine’s government had also announced accepting Bitcoin as donations. This is a very good use where governments are looking at cryptos during such crisis and anonymously people are also able to contribute,” Sathvik Vishwanath, Co-founder, Unocoin told Financial Express Online.

“I would not be a buyer, but if I was a Russian I would be a buyer,” veteran investor and founding partner of Mobius Capital Partners Mark Mobius told CNBC on Tuesday. “I would say that’s the reason why bitcoin has shown strength now — because the Russians have a way of getting money out, getting their wealth out,” he added. 

Moreover, trading volumes in Bitcoin using the ruble had increased to the highest level since May, Bloomberg reported on Monday citing information from crypto data firm Kaiko. Likewise, in Ukraine’s currency Hryvnia, trading volumes in Bitcoin surged to a level not seen since October.

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