Russian Ruble Crashes Further Against Bitcoin As Oil Sanctions Loom
Russia’s ruble sank 26% to a record low against Bitcoin on Monday, extending losses as the United States said it was mulling sanctions on Moscow’s oil exports. One Bitcoin is now worth over 5 million ruble, with the currency having slumped nearly 60% against Bitcoin in the past month.
Sanctions pressure Russian economy
Restrictions on Russian oil will be the latest sanctions by the west over the country’s invasion of Ukraine. The United States and its allies had in February blocked several Russian banks from the SWIFT payments network, and also frozen their overseas assets, depriving Russia of its foreign exchange sources.
The move to block oil will further this trend, and is expected to put more pressure on the Russian economy. According to data from the Observatory of Economic Complexity, oil makes up more than 50% of Russia’s total exports. The ruble, which was already trading at record lows to the dollar, crashed further against the greenback on Monday.
The Russian Central Bank has acted quickly to protect the economy, more than doubling interest rates to 20%. But it said that the economic situation remained dire. Recent sanctions have also seen several international firms suspending their Russian operations.
Crypto demand surges in Russia
Crypto trading volumes had surged in Russia over the last two weeks of February, specifically after the U.S. sanctions, data from data provider Kaiko shows. This fueled some speculation that Russians were moving into crypto to protect their wealth, especially given the rising popularity of stablecoin tether.
In contrast to sanctions by major payment services Visa and Mastercard, most major crypto exchanges are still active in Russia. Recently, Coinbase CEO Brian Armstrong said many Russians were using crypto as a lifeline due to ruble volatility and restricted access to foreign markets. Armstrong also said there was little risk of Russia using crypto to avoid sanctions, which was a major concern for western lawmakers.
In Ukraine, several citizens were also seen turning to crypto as the hryvnia crashed, with tether being in demand.
- John Bollinger Sees ‘W’ Bottom Forming in Ethereum and Solana, Not Bitcoin
- Robert Kiyosaki Calls Bitcoin and Ethereum ‘Real Money,’ Urges Investors to Ditch ‘Fake’ Fiat
- ‘Sell Gold, Buy Bitcoin’: Expert Flags Major Market Bottom Signal
- Ripple Makes ‘Unusual’ $500M Transfer Amid $1 Billion XRP Treasury Plans
- ‘I’m Going Bonkers’: Dave Portnoy Says He’ll Buy XRP Again If It Dips Below This Level
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?
- HYPE Price Teeters Amid Weak Technicals and Soaring Liquidations
- XRP Price Prediction As Ripple Announces $1B Treasury Plans – Is a Rebound Imminent?
- Bitcoin Price Prediction Amid Gold’s Parabolic Rally to Second-Largest Reserve Asset
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
