One of the notable characteristics of Bitcoin and other cryptos is their volatility. The price swing of the assets could pose as both a beneficial or a discouraging fact for many investors. Daily speculators will gain more through their trades and other crypto transactions as the price surges. But a drop could bring a huge loss for an investor leading to capital deflation.
Though all crypto assets always experience different price fluctuations, Bitcoin’s price change seems more remarkable. Bitcoin is the most prominent and the global largest digital asset by market cap. To several people, cryptocurrency is synonymous with Bitcoin.
Track live crypto price of 10000+ coins!
Related Article | Sanctions Bite – Netflix, American Express, 2 Major Accountancy Firms Reject Russia
The price swing of BTC has been unpredictable for the past couple of months. Recently, Bitcoin has hit its highest real volume from early December.
This new rising trend in BTC is considerably connected to the current turbulence in Ukraine due to Russia’s invasion of the country. As a result, several people move their money into crypto funds in fear of getting a possible deflation in their fiat currency from the instability with the countries.
According to Arcane Research, investors now have increased speculative importance on cryptocurrencies, especially Bitcoin, as non-political money during the geopolitical conflict, instability, and capital controls.
Despite the Ukraine-Russian war, Bitcoin’s real daily volume has moved tremendously beyond what was obtainable for the past three months. Arcane Research, a blockchain analytics company, reports that BTC’s real daily trading volume rose above $10 billion last Thursday. This stands as the highest record since early December.
Real trading volume means all data from reputable exchanges with no wash trading transactions. So, the extraction of the information was from FTX, LMAX, and the ten exchanges of Bitwise, such as Binance, Coinbase, Poloniex, and Kraken.
Explanation For Bitcoin Trading Spike
Furthermore, the company mentioned that there had been new crypto transactions during the crisis. Some of the impacts came from crypto fundraising to support Ukraine and the increased demand for alternative money windows due to the strict capital controls in Russia.
Also, a contributory factor to the high BTC trading volume on February 24 is investors’ intense pressure to sell and reduce the risk. Hence, BTC’s price fall that day was up to 10%.
Comparisons from other crypto data aggregators such as CoinGecko and Messari’s chart depict similar trends for Bitcoin’s daily trading volume on February 24. But Messari recorded a dip from $11.6 billion on February 24 to $7.5 billion on March 1 for BTC’s real daily trading volume.
Related Article | TikTok Is Banning Influencers From Promoting Cryptocurrencies
Moreover, Arcane Research indicated the largest daily percentage profit for BTC price in more than a year as of February 28. The price increase was by 14.5% within 24 hours. According to the company, such a rise has a link to more crypto adoption through the Ukraine-Russian war situation.
A considerable number of Ukrainian citizens have recently taken to purchasing cryptocurrencies. This is because of the disruption in the operation of financial services and markets such as banks.
As a result, there’s an increase in Tether and Bitcoin purchases through Ukrainian hryvnia. While the former moved from $2.5 million to almost $8.5 million, the latter moved from $1 million to $3.0 million all by February 25th.
Featured image from Pixabay, chart from TradingView.com
Download MAXBIT Android App, Your best source of all crypto news!
Share this article: