Bitcoin trade in Ukraine increased by 300% with the Russian attack

The Spanish newspaper, Diario, reported that Ukrainians are turning to digital currencies as a safe haven, while Bitcoin donations to support the Ukrainian army are increasing, the use of digital currencies such as Bitcoin is rising in Ukraine as Russia intensifies its military attack on Ukraine.

The newspaper noted that the trading volume of Bitcoin and other cryptocurrencies rose significantly on Kona, one of the leading digital asset exchanges in Ukraine. Data from CoinGecko shows that metrics have quadrupled since last Thursday, amid news of a Russian military incursion, and bitcoin trading in Ukraine surged 300% with the Russian attack on the country.

Trading volumes on the platform increased from $1.1 million on Monday, February 21 to nearly $5 million on Thursday, February 24. According to the data, the Ukrainian hryvnia (UAH) was the most traded currency during this period, followed by bitcoin.

The increase in the volume of cryptocurrency trading in Kona coincided with the increase in the bitcoin exchange rates compared to the global markets, and the price of bitcoin reached 40 thousand dollars on the Ukrainian stock exchange while less than 39 thousand dollars was traded on other exchanges. A value above average indicates that domestic demand has outpaced available supply since the attacks.

Metrics indicate that citizens of Ukraine have been looking for safe havens in some digital assets after Russian President Vladimir Putin declared a “special military operation”.

The newspaper pointed out that the Russian ruble suffered the most notable drop, the Ukrainian hryvnia also fell against the US dollar to an all-time low, and as a result, cryptocurrency trading volumes rose on some exchanges and some assets were trading at a higher premium. Similar to the trade disparity seen by Bitcoin on Kona.

“We are talking about millions of dollars in cash that they want to invest in cryptocurrencies … but we can’t find people who want to do the opposite, sell it,” explained the founder of Kona, Michael Chobanyan, “the movement of increasing cryptocurrency prices in the Ukrainian market.”

Other reports also confirm that more Ukrainians are turning to cryptocurrency amid the Russian military offensive. Besides viewing digital assets as a safe haven, some organizations have chosen to accept cryptocurrency donations to support the Ukrainian military.

The Kyiv-based charity Come Back Alive has received more than $4 million in bitcoin donations since Russian forces launched an attack on Ukraine last Thursday, and the group’s collections rose sharply after an anonymous donor sent $3 million in bitcoin to the non-profit organization’s wallet. governmental.

The use of cryptocurrencies in Ukraine also rose after the country’s central bank announced the suspension of the use of electronic money. The authority also limited cash withdrawals to 100,000 UAH ($3,353) per day and lifted the ban on cross-border purchases and foreign currency withdrawals.

Ukraine’s Defense Ministry said yesterday that it is not allowed to accept Bitcoin donations. Meanwhile, some crypto enthusiasts have organized to raise funds to help defend Ukraine.