June 15, 2022

Ukraine under attack: Crypto capital rocked by invasion

As markets are rocked by Russia's attack on Ukraine, investors are purchasing bitcoin at a price many wish they had taken advantage of before the all time highs of 2021.

Dave Birnbaum
Dave Birnbaum

Director of Product

Ukraine under attack: Crypto capital rocked by invasion

Table of contents

Ukraine under attack: Crypto capital rocked by invasion

Russia strikes Ukraine

After weeks of warnings from Western powers, Russian President Vladimir Putin launched a military operation in Ukraine on Thursday.

Ukrainian officials say Russia has begun a full-scale invasion of Ukraine, with fighting between Russian troops and Ukrainian forces constituting Europe’s worst conventional warfare since WWII. Markets worldwide plummeted.

Early Thursday, the price of bitcoin plummeted below $35,000 as Russian President Vladimir Putin declared war on Ukraine.

It dropped over 8% in 24 hours to $34,969, according to CoinMarketCap.

CoinMarketCa Graph of Ukraine Russia War Bitcoin Dip

Bitcoin's value has declined by half since its November peak of $68,990 owing to global worries about interest rate hikes by the US Federal Reserve and restrictions on digital assets imposed by several major governments.

Thursday saw other cryptocurrencies suffer as well. According to CoinMarketCap, Ethereum lost 12% of its value, while Dogecoin lost 14%.

Global grief

Meanwhile, the cryptocurrency markets aren't the only ones that are suffering.

As the US financial markets plunged into correction territory, the Dow Jones Industrial Average sagged almost 2%.

Asian markets, which were open at the time of Putin's address, have also reacted, with the Nikkei down 1% and China's Hang Seng Index down more than 2%.

However, Ukraine has a bitcoin adoption advantage over Russia.

Chainalysis, a market research firm, placed Ukraine fourth globally in its 2021 Global Crypto Adoption Index (GCAI), which examines the number and value of cryptocurrency exchanges across nations.

Even while Vladimir Putin wages war against Ukraine, Ukraine appears to be better prepared to embrace the new financial technology.

If it can survive this war, Ukraine will be well-positioned to thrive in a bitcoin world.

Crypto capital of the world

Last week, Ukraine's parliament passed legislation legalizing cryptocurrencies, establishing the groundwork for a regulatory system that will properly monitor the flow of digital assets like bitcoin.

According to The New York Times, more than $150 million in cryptocurrency is traded every day in Ukraine, and almost $8 billion in bitcoin enters and leaves the nation each year.

Ukraine has a large number of software developers eager to enter the blockchain industry.

Ukraine also has the unique distinction of processing more cryptocurrency transactions each day than it does in its local currency, the hryvnia. This has led to the country being referred to as The Crypto Capital of the World.

Ukraine's officials are optimistic that the new law and its crypto adoption would attract more international investment into its growing crypto sector, but tensions – and now a full-fledged war – with Russia are likely to stifle inflows.

Moscow, for its part, is considering new legislation or amend current legislation to regulate cryptocurrencies as a currency in order to curb illegal activity and bring crypto-related taxes under government scrutiny.

The bitcoin beacon

Photo by matthaeus / Unsplash

Meanwhile, as Ukraine's currency fell on Thursday and the central bank capped cash withdrawals at UAH100,000 ($3,390) per day, some Ukrainians may be turning to bitcoin.

The volume of searches for 'bitcoin' has risen in the Eastern European country during the last day, according to Google Trends, after surging dramatically early Thursday.

As of February 24, the Google Trends graphic reveals a 100% increase in interest in bitcoin.

This is also reflected in the moves of smart money. Though markets are down, some savvy investors appear to be taking advantage of the digital currency's price slump.

The dip has been purchased by a number of high profile people and entities, including US Senator Ted Cruz, Nasdaq-listed Microstrategy, and El Salvador.

On Saturday, Ricardo Salinas Pliego, Mexico's third-richest billionaire, gave some investing advice in bitcoin.

“You have to buy bitcoin (keep buying when the price is low), then just hold your BTC, forget about selling … Trust me you’re going to thank me later.”

According to Bitcoin magazine, market activity suggests a marked increase in retail Bitcoin purchases over the previous two months, with sales originating from "whales" (people who control wallets that contain a lot of bitcoin) declining.

As the world's markets continue to be rocked by the Russian conflict, some investors are sensing an opportunity to purchase Bitcoin at a price that many wish they had taken advantage of right before the surge to record values in 2021.

From chaos to hope

Historically, every time the price of bitcoin has fallen, it has rebounded with intensity, helping to solidify its place as the world's most valuable cryptocurrency.

The current dip in the price of bitcoin is no different, and it's only a matter of time until its value begins to surge again.

As with many other markets, bitcoin has been affected the terrible violence and chaos in Europe and its wake of uncertainty. How long these trends continue remains to be seen.

But one thing is clear. Many investors are seizing the opportunity to make moves in the Bitcoin market at a rare time when the currency is trading at a steep discount.

Head to Coinbits to discover the quickest, easiest, and most affordable way to invest in Bitcoin at this unprecedented time.

February 25, 2022

Ukraine under attack: Crypto capital rocked by invasion

As markets are rocked by Russia's attack on Ukraine, investors are purchasing bitcoin at a price many wish they had taken advantage of before the all time highs of 2021.

Dave Birnbaum
Dave Birnbaum

Director of Product

Ukraine under attack: Crypto capital rocked by invasion

Russia strikes Ukraine

After weeks of warnings from Western powers, Russian President Vladimir Putin launched a military operation in Ukraine on Thursday.

Ukrainian officials say Russia has begun a full-scale invasion of Ukraine, with fighting between Russian troops and Ukrainian forces constituting Europe’s worst conventional warfare since WWII. Markets worldwide plummeted.

Early Thursday, the price of bitcoin plummeted below $35,000 as Russian President Vladimir Putin declared war on Ukraine.

It dropped over 8% in 24 hours to $34,969, according to CoinMarketCap.

CoinMarketCa Graph of Ukraine Russia War Bitcoin Dip

Bitcoin's value has declined by half since its November peak of $68,990 owing to global worries about interest rate hikes by the US Federal Reserve and restrictions on digital assets imposed by several major governments.

Thursday saw other cryptocurrencies suffer as well. According to CoinMarketCap, Ethereum lost 12% of its value, while Dogecoin lost 14%.

Global grief

Meanwhile, the cryptocurrency markets aren't the only ones that are suffering.

As the US financial markets plunged into correction territory, the Dow Jones Industrial Average sagged almost 2%.

Asian markets, which were open at the time of Putin's address, have also reacted, with the Nikkei down 1% and China's Hang Seng Index down more than 2%.

However, Ukraine has a bitcoin adoption advantage over Russia.

Chainalysis, a market research firm, placed Ukraine fourth globally in its 2021 Global Crypto Adoption Index (GCAI), which examines the number and value of cryptocurrency exchanges across nations.

Even while Vladimir Putin wages war against Ukraine, Ukraine appears to be better prepared to embrace the new financial technology.

If it can survive this war, Ukraine will be well-positioned to thrive in a bitcoin world.

Crypto capital of the world

Last week, Ukraine's parliament passed legislation legalizing cryptocurrencies, establishing the groundwork for a regulatory system that will properly monitor the flow of digital assets like bitcoin.

According to The New York Times, more than $150 million in cryptocurrency is traded every day in Ukraine, and almost $8 billion in bitcoin enters and leaves the nation each year.

Ukraine has a large number of software developers eager to enter the blockchain industry.

Ukraine also has the unique distinction of processing more cryptocurrency transactions each day than it does in its local currency, the hryvnia. This has led to the country being referred to as The Crypto Capital of the World.

Ukraine's officials are optimistic that the new law and its crypto adoption would attract more international investment into its growing crypto sector, but tensions – and now a full-fledged war – with Russia are likely to stifle inflows.

Moscow, for its part, is considering new legislation or amend current legislation to regulate cryptocurrencies as a currency in order to curb illegal activity and bring crypto-related taxes under government scrutiny.

The bitcoin beacon

Photo by matthaeus / Unsplash

Meanwhile, as Ukraine's currency fell on Thursday and the central bank capped cash withdrawals at UAH100,000 ($3,390) per day, some Ukrainians may be turning to bitcoin.

The volume of searches for 'bitcoin' has risen in the Eastern European country during the last day, according to Google Trends, after surging dramatically early Thursday.

As of February 24, the Google Trends graphic reveals a 100% increase in interest in bitcoin.

This is also reflected in the moves of smart money. Though markets are down, some savvy investors appear to be taking advantage of the digital currency's price slump.

The dip has been purchased by a number of high profile people and entities, including US Senator Ted Cruz, Nasdaq-listed Microstrategy, and El Salvador.

On Saturday, Ricardo Salinas Pliego, Mexico's third-richest billionaire, gave some investing advice in bitcoin.

“You have to buy bitcoin (keep buying when the price is low), then just hold your BTC, forget about selling … Trust me you’re going to thank me later.”

According to Bitcoin magazine, market activity suggests a marked increase in retail Bitcoin purchases over the previous two months, with sales originating from "whales" (people who control wallets that contain a lot of bitcoin) declining.

As the world's markets continue to be rocked by the Russian conflict, some investors are sensing an opportunity to purchase Bitcoin at a price that many wish they had taken advantage of right before the surge to record values in 2021.

From chaos to hope

Historically, every time the price of bitcoin has fallen, it has rebounded with intensity, helping to solidify its place as the world's most valuable cryptocurrency.

The current dip in the price of bitcoin is no different, and it's only a matter of time until its value begins to surge again.

As with many other markets, bitcoin has been affected the terrible violence and chaos in Europe and its wake of uncertainty. How long these trends continue remains to be seen.

But one thing is clear. Many investors are seizing the opportunity to make moves in the Bitcoin market at a rare time when the currency is trading at a steep discount.

Head to Coinbits to discover the quickest, easiest, and most affordable way to invest in Bitcoin at this unprecedented time.