Bitcoin Surges Against The Ruble But Why Is That The Case?

Bitcoin surges against the ruble as the oligarchs in Russia are trying to avoid sanctions imposed by the West after attacking Ukraine, but why is it surging so much? Let’s find out more in today’s latest bitcoin news.

Last Tuesday, Bitcoin hit an all-time high measured in rubles but does this really mean anything? The price feeds don’t tell the full story when it comes to comparing the asset prices with different currencies when one of the currencies is issued the country facing financial sanctions for invading Ukraine. A quick look at USD/RUB tells most of the story because one US dollar was worth 84 rubles with over 114 rubles. With the type of devaluation, you could expect most assets priced in rubles to reach an ATH if the trend continues.

The ruble lost 37% of the US dollar value which will explain something near the 37% gain in Bitcoin in ruble. It will explain why BTC gained more for BTC but it wouldn’t represent why BTC gained more than 55% with the excess gain suggesting there was some demand factor at play here.
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The USD price also is still more than 50% off of its all-time high.

Depending on your familiarity with the history of crypto and your knowledge of political issues, you might have one of the two theses about what is going on. The first one is that the wealthy Russians that started a war are using BTC to avoid sanctions because they need the money to fight the war. The regular people in Ukraine and Russia also want to use BTC because they need the money to live in war times.

Some stories suggest that masses can pile into BTC to preserve wealth if their countries continue the war while Bitcoin’s ledger is not going to do Vladimir Putin’s government with any favors in voiding sanctions. Unlike the Ruble, the Ukrainian hryvnia hasn’t lost too much of the value in regards to the dollar but Bitcoin traded at a 6% premium to USD on Binance’s UAH market after Russia’s invasion of Ukraine which suggests a demand surge.

But Bitcoin surges against the Ruble maybe because many people perceive it as a hedge against the rising inflation and to protect their wealth from the current geopolitical tensions.