Bitcoin has become one of the most valuable currencies in the world after overtaking the Russian ruble.
The invasion of Ukraine has caused the Russian currency to fall to record lows, and Bitcoin is benefiting from it. This followed its strong rally after it fell to $35,000 following news of the invasion.
Bitcoin is more valuable than the Russian ruble
With an increase of more than 17% in the last seven days and an increase of 13% in the last 24 hours, Bitcoin is now among the 15 most valuable currencies in the world by market capitalization. It outperforms fiat currencies from countries such as Saudi Arabia, Mexico, Thailand, Sweden, and Israel.
The fall of the Russian ruble against Bitcoin and the US dollar came after some Russian financial institutions were cut off from SWIFT. The value of the ruble against the dollar reached 108₽ on Monday, a significant increase from 83₽ the previous week.
— defiprime (@defiprime) March 1, 2022
One Bitcoin also started trading around ₽3,820,000, the highest it has been so far this year.
The SWIFT ban also means that the demand for rubles has dropped significantly in other countries. Although the Bank of Russia raised its key rate from 9.5% to 20%, this did not prevent the free fall of the currency.
Bitcoin is now number 14 on the list of major currencies, three positions ahead of the Russian ruble, which is at 17. However, it will take at least a 52% increase in its current value to beat the next currency on the chart, the francs. Swedish.
BTC’s impressive performance in recent years means that its market capitalization has also increased significantly. Bitcoin is currently more valuable than several companies including Meta, Visa, JP Morgan Chase, etc.
With a market capitalization of over $800 million, it is the 9th most valuable asset in the world. Yet far behind its physical comparison, gold, which is number one.
Ukraine Raises Over $20 Million Via Crypto
The asset’s performance despite global tensions could be attributed to the crypto community’s support for Ukraine. So far, Ukraine has received over $20 million worth of crypto in donations since the war started.
However, the crypto community’s decision to pitch its tent with Ukraine does not reflect Bitcoin’s position. Cryptocurrency is completely neutral, and it’s possible that Russia could benefit from crypto donations just as well.
According to Bitfinex CTO Paolo Ardoino, its use cases during this time show “the beauty of this technology” as its “borderless and censorship-proof nature allows donors to bypass traditional financial institutions.” which could normally block payments to these organizations”.
Already, there are indications that more Russians are trading crypto in an effort to hedge against the decline in value of their national currency.
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