Cointelegraph Team
Cointelegraph
The “real” daily Bitcoin (BTC) volume spiked to levels not seen for three months amid the Russian invasion of Ukraine.
According to the latest weekly update report from blockchain analytics firm Arcane Research, real daily BTC trading volume surged above the $10 billion last Thursday (Feb. 24, the first day of the invasion), marking the highest daily volume recorded since Dec. 4.
The firm cited “new crypto narratives” that have risen to the forefront amongst the ongoing crisis, such as crypto fundraising in Ukraine, along with demand increasing in relation to the western block and Russia introducing “the strictest capital controls in decades.”
Strong selling pressure from investors looking to take risk off the table on Feb. 24 may also have contributed to the surge in daily BTC volume, as the price dipped 10% on that day.
The term “real trading volume” refers to data sourced from exchanges that are believed to be reputable and free of wash trading activities. In this instance, Arcane Research pulled its figures from the Bitwise 10 exchanges (consisting of names such as Coinbase, Kraken, Poloniex and Binance) along with LMAX and FTX.
Real daily BTC trading volume: Arcane Research
In comparison, crypto data aggregators such as Coingecko — who draw data from more than 500 exchanges — had BTC’s trading volume on Feb. 24 at around the $25 billion region. Messari’s real BTC volume chart (which includes a number of additional exchanges) paints a similar picture to Arcane’s, recording a spike to around $11.6 billion worth of volume last Thursday.
Since Feb. 24, the real daily BTC volume has dipped to around $7.5 billion as of March. 1 according to data from Messari. Th
Arcane Research also highlighted that the price of BTC saw its largest daily percentage gain in over a year on Feb. 28, with the price jumping 14.5% in the space of 24 hours. The firm attributed the surge in part to Russian and Ukrainian crypto adoption (although the actual volume is relatively small in global terms) along with increased speculation on crypto’s use cases amid the current Russian invasion:
“Investors are speculating that crypto will become increasingly important apolitical and trustless money in a time of escalating geopolitical uncertainty, conflict, and capital controls. This speculation may have contributed to the 15% increase in the Bitcoin price over the past seven days.”
Crypto in Ukraine and Russian
With financial services and markets severely disrupted in both Russia and Ukraine, there has been flow on effects for the use of cryptocurrencies.
The report pointed to data from last month showing a significant surge in crypto purchases from Ukrainian citizens.
Around the time the full scale Russian invasion began on Feb. 24, daily Tether (USDT) stablecoin purchases on Binance via the Ukrainian hryvnia (UAH) increased from around $2.5 million to as high as roughly $8.5 million by Feb. 25. While the BTC/UAH chart showed a similar trajectory, surging from around $1 million to $3.0 million within that time frame.
Daily UAH crypto purchases: Arcane Research
A similar phenomenon occurred in Russia as well, with Ruble based purchases of USDT climbing from around $15 million on Feb.21 to as high as $34.94 million on Feb. 28. Daily Bitcoin purchases also jumped from below $5 million to as high as $15 million on Feb. 25, before dipping back to around the $12 million range.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Crypto traders brace for short-term volatility with $2.4 billion options expiry on Friday
Bitcoin and Ethereum options market looks bullish on Friday, according to data from intelligence tracker Greeks.live. The firm said it has identified two Bitcoin calls that show an underlying bullish sentiment among market participants.
XRP recovers from week-long decline following Ripple’s response to SEC motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.
Lido adds 4% gains as protocol rolls out first step towards decentralization
Lido takes the first batch of simple DVT validators to live, a step taken to decentralize the protocol. Lido leveraged technology to expand the protocol to multiple node operators, inviting both solo and community stakers.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.