- Bitcoin’s trading against the ruble has been on fire over the past couple of days, rising over 10% against the Russian currency. The Russian currency has been on a wild ride over the past few months, dropping almost 50% from its December highs against the U.S. dollar.
- Yesterday saw the ruble hit a new all-time low against the dollar, close to 80 rubles to the dollar. Bitcoin, on the other hand, has been able to maintain its value despite the volatility in the ruble.,
- The value of Russia’s ruble sank to a fresh all-time low against the dollar on Monday, after the country’s central bank unexpectedly imposed a ban on exchanging cryptocurrencies for rubles. The ruble tumbled to 64.9444 RUB, the weakest level since April 2017, according to data from Moscow-based online exchange Yapizon.
- That’s down another 7% since the central bank announced the cryptocurrency ban on Friday. The ruble’s decline accelerated after the central bank announced it would buy foreign currencies rather than try to stop the ruble’s slide.
The Ruble Surges As Russia’s Currency Crashes
- The Russian ruble has surged in value over the past month, even as the country’s currency, the rouble, has crashed. The ruble has been strengthening in response to a variety of factors, including rising oil prices, the central bank’s decision to raise interest rates, and a weaker U.S. dollar.
- The strengthening Russian currency is good news for Russian consumers, who will see their purchasing power increase. It should also help Russian companies expand their exports, since their products will become cheaper for foreign buyers.
Why Is It Happening
The Ruble has plummeted to its lowest level in decades today as the Russian economy continues to struggle. The currency dropped to an all-time low of 79.39 to the US dollar, down from a high of 80.10 earlier in the day. This is the biggest one-day decrease since Russia defaulted on its sovereign debt in 1998. The plunge comes as the Russian economy continues to struggle.
Summary for traders and investors:
- Bitcoin trades denominated in Russian rubles reportedly approximated $1.5 billion in daily volume, according to data from Crypto Compare. This is a notable increase in daily trading volume for Bitcoin, which had been trading in the $2,000-$3,000 range until the beginning of August.
- This increase in trading volume has been enough to cause concern among certain members of the crypto community, who have pointed to the potential for price manipulation in the wake of the recent Russian sanctions. It is important to note, however, that the majority of this trading volume is likely organic, and not a result of market manipulation.