Interest in Bitcoin skyrockets as armed conflict intensifies between Ukraine and Russia

Citizens in Ukraine are purchasing more of the leading cryptocurrency than ever before to protect their asset holdings as the country continues to defend itself from the Russian military invasion. 

Crypto trading volume in Ukraine soars

A new report by Arcane Research found that Ukrainians were using leading crypto exchange Binance to purchase Bitcoin and stablecoin Tether with their local currency, the hryvnia. 

The 24-hour Tether-hryvnia trading volume soared from $6 million right before the invasion, to around $8.5 million. In the six weeks prior to the invasion, the trading pair’s volume was an average of just under $3 million.

Bitcoin traded against the hryvnia also witnessed its volume spike from $1 million to $3 million.

The report noted that Ukrainians are also purchasing cryptocurrencies like the Russians. Ukrainians are worried that the banking system in the country may collapse and are now looking to rely on the new asset class as a safe haven. 

Citizens in Ukraine that are fleeing to other countries may also be able to take some of their wealth with them in the form of cryptocurrencies, the report noted.

Since Russian President Vladimir Putin announced the invasion of Ukraine on February 24, interest in cryptocurrencies has soared.

The Ukrainian government has requested donations in Bitcoin, Ethereum and Tether and has quickly received $20 million in crypto funds. 

The Ukrainian government has recently announced that it will now be accepting crypto donations in Polkadot.

However, major cryptocurrency exchanges including Coinbase, Binance and Kraken have been asked by the Ukrainian government to block Russian accounts. So far, these exchanges have refused and will only take action if sanctions are imposed upon them.