• During the war, Bitcoin reaches its highest real-time volume since December

  • The volatility of Bitcoin and other cryptocurrencies is one of their most noteworthy qualities. Many investors may find the price swings of their assets to be both advantageous and discouraging. As the price of bitcoin rises, daily speculators will profit more from their trades and other crypto activities. However, a dip could result in a significant loss for an investment, resulting in capital deflation.

    Though other crypto assets endure price changes, Bitcoin’s price movement appears to be more notable. Bitcoin is the most well-known and largest digital asset in the world in terms of market capitalization. Many people associate cryptocurrency with Bitcoin.

    For the past few months, the price of Bitcoin has fluctuated erratically. Bitcoin recently reached its biggest real volume since early December.

    This new increasing trend in Bitcoin is inextricably linked to the current volatility in Ukraine as a result of Russia’s invasion of the nation. As a result, many people have moved their money into crypto funds in order to avoid a probable deflation in their fiat currency as a result of the countries’ insecurity.

    According to Arcane Research, investors now place a higher speculative value on cryptocurrencies, particularly Bitcoin, as non-political money amid times of geopolitical turmoil, insecurity, and capital controls.

    Despite the Ukraine-Russia conflict, Bitcoin’s real daily volume has beyond what was previously possible in the last three months. According to Arcane Research, a blockchain analytics firm, BTC’s real daily trade volume surpassed $10 billion last Thursday. This is the biggest total since early December.

    Real trading volume refers to all data from reputable exchanges that does not include any wash trading activity. As a result, the data was extracted from FTX, LMAX, and Bitwise’s ten exchanges, including Binance, Coinbase, Poloniex, and Kraken.

    Explanation for the Increase in Bitcoin Trading

    Furthermore, the business stated that fresh crypto transactions occurred during the crisis. Some of the consequences stemmed from cryptocurrency fundraising to aid Ukraine and increasing desire for alternative money channels as a result of Russia’s harsh capital controls.

    Investors’ increased urge to sell and limit risk also contributed to the high BTC trading volume on February 24. As a result, BTC’s price fell by much to 10% that day.

    Other crypto data aggregators’ charts, such as CoinGecko’s and Messari’s, show similar trends for Bitcoin’s daily trading volume on February 24. However, Messari noticed a drop in BTC’s true daily trading volume from $11.6 billion on February 24 to $7.5 billion on March 1.

    Furthermore, Arcane Research reported the highest daily percentage profit for the BTC price in more than a year on February 28. Within 24 hours, the price increased by 14.5 percent. According to the firm, such a growth is linked to increased crypto use as a result of the Ukraine-Russian conflict.

    A sizable number of Ukrainians have recently begun to invest in cryptocurrency. This is due to the interruption of financial services and markets such as banks.

    As a result, the purchase of Tether and Bitcoin in Ukrainian hryvnia has increased. While the former increased from $2.5 million to over $8.5 million by February 25th, the latter increased from $1 million to $3.0 million.

    What's your reaction?
    Happy0
    Lol0
    Wow0
    Wtf0
    Sad0
    Angry0
    Rip0