High Demand For Bitcoin Amid Russian Invasion Lead To Apex Crypto Trading At Big Premium In Ukraine

Bitcoin BTC/USD gained a premium in the Ukrainian markets in comparison with the local currency, the hryvnia (UAH), in the aftermath of the Russian invasion last week.

What Happened: The apex cryptocurrency traded at a 6% premium to the hryvnia, according to a note by Kaiko Research.

The demand for cryptocurrencies on Binance soared in Ukraine after Russia's invasion last week as local currency markets were left in a state of disarray, said Kaiko Research.

The disruptions came after Ukraine's central bank halted foreign currency withdrawals and the hryvnia declined to record lows against the dollar.

Charting The Bitcoin Premium — Courtesy Kaiko Research

The premium charts the difference between the price of Bitcoin on UAH markets in comparison with the U.S. dollar (USD) markets. Kaiko also provided BTC-Russian Ruble (RUB) and BTC-Euro (EUR) premiums for comparison purposes.

See Also: How To Buy Bitcoin (BTC)

Why It Matters: Tether (USDT), the largest stablecoin by market cap, also rose to its highest level against the hryvnia while the Ukrainian unit plunged against the greenback.

Tether-Hryvnia Exchange Rate — Courtesy Kaiko Research 

It was reported earlier that, in the aftermath of the invasion, Tether became more valuable than the dollar in Ukraine as the country’s wealthy scrambled to get hold of the stablecoin.

Trade volumes of both RUB and UAH trading pairs increased in comparison with other trading pairs such as BTC-USD, which according to Kaiko, suggests “the crisis is directly influencing trading behavior.”

Daily Trade Volume (Bitcoin-Russian Ruble) — Courtesy Kaiko Research


Daily Trade Volume (Bitcoin-Hryvnia) — Courtesy Kaiko Research

UAH trading volumes soared to a five-month high, Kaiko Research said, pointing to Ukraine’s official Twitter handle asking for donations in cryptocurrencies. 

Price Action: At press time, BTC traded 15.8% higher at $43,477.86 over 24 hours. 

Read Next: Bitcoin Volume In Russia Skyrockets As Ruble Falls And Tensions Rise

Posted In: BinanceBitcoinhryvniaRubleRussia-Ukraine WarCryptocurrencyFintechNewsMarkets

Visit Benzinga's Crypto Homepage - 1,000,000+ depend on Benzinga Crypto every month