From Korea to Russia – The invasion of Ukraine caused Bitcoin (BTC) to temporarily dip below $34,000, only to see it subsequently begin a strong ascent that propelled its price to around $45,000. However Bitcoin still fails to regain the $50,000. Meanwhile, its price on Russian peer-to-peer exchanges currently sits well above this symbolic level.
Russian dolls for bitcoin: Bitcoin price explosion in Russia
The media DeFiprime.com indicated in its tweet of 1er March 2022, that Bitcoin is trading with a $20,000 bonus on Russian P2P exchanges. The media describes this price difference as ” premium matreshka which would be the new premium kimchi.
The latter is the difference in price of a cryptocurrency, in particular Bitcoin, between its price on South Korean stock exchanges and on foreign exchanges. The price of Bitcoin on South Korean exchanges was then 50% higher than its price on foreign exchanges at the height of the kimchi premium. This figure is generally around 5% today.
On the Russian exchange side, matreshka or the matryoshka doll is a set of wooden dolls painted in colors, of different sizes. They are nested inside each other. They symbolize several values such as respect for the elderly or family unity.
The current magnitude of this bounty matreshka shows a strong craze of Russians for Bitcoin. A significant number of Russians would turn to Bitcoin given the figures following the sanctions imposed by the United States and its allies. These provisions are a blow to the ruble, to the monetary and financial system in general of Russia.
Bitcoin is currently positioned as a safe haven for Russians who see the value of their ruble assets melting visibly. Cryptocurrencies in general could position themselves as alternatives to Russian private SWIFT banks, for the execution of international transactions.
The economic war waged by the West against Russia is currently benefiting Bitcoin, which presents itself as an alternative to a struggling Russian monetary and financial system. Critics of Bitcoin in the United States and their allied countries could nevertheless take advantage of the current context to urgently pass a draft strict regulation of cryptocurrencies. This decision would then be justified by the vital need to prevent Russia from circumventing the sanctions via the new finance.
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