‘Catastrophe’ – Bitcoin, Ethereum and Crypto Prices Now Prepared for New Earthquake in Russia After SWIFT Shock


Bitcoin, ethereum and cryptocurrency prices have swung wildly over the past week as Russia’s invasion of Ukraine sends shockwaves through global markets, adding to fears of a “cataclysmic change in the market”.

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Bitcoin price fell below $35,000 per bitcoin this week before bouncing back strongly. Ethereum and other major cryptocurrencies have been equally volatile as “extreme fear” grips investors.

Now traders are braced for serious swings after Russia was kicked out of the main international payments network SWIFT, with a former Russian Central Bank vice president warning of a “catastrophe” in the Russian currency market.

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“It means there is going to be a catastrophe in the Russian forex market on Monday,” Sergei Aleksachenko said. Reuters. “I think they will stop trading and then the exchange rate will be fixed at an artificial level, like in Soviet times.”

On Saturday, the United States, EU, United Kingdom, France, Germany, Italy and Canada announced in a joint statement that they would penalize Russia’s central bank and exclude certain Russian banks from the SWIFT messaging system, used for billions of dollars in transactions. worldwide, and designed to “prevent the Russian Central Bank from deploying its international reserves in a way that undermines the impact of our sanctions”.

According to a Credit Suisse report reported by Bloomberg.

Bitcoin, ethereum and crypto prices rallied along with the stock markets towards the end of this week as traders accepted Russian sanctions. However, it is believed the latest measures could trigger further volatility, with soaring commodity prices and inflation fears rattling investors in recent weeks.

The extreme volatility in bitcoin prices at a time when the price of gold has soared has undermined the popular narrative that bitcoin has begun to act as digital gold, a so-called safe-haven asset to which investors flee in times of perceived risk, although some bitcoin and crypto investors remain confident.

“Unlike major stock indices, bitcoin did not actually register a lower low. [this week]“, wrote Mikkel Morch, executive director of digital asset fund ARK36, in an emailed note. “This small detail could be of great importance in terms of the discussion around bitcoin as a safe haven asset .”

Despite the rally in bitcoin, ethereum and crypto prices, fears persist that the bitcoin price could fall back.

“The situation is still volatile and the $40,000 levels are still the resistance,” Morch added. “Unless bitcoin breaks this barrier significantly, revisiting the lows or even the $30,000 support is still very much on the table in the near term.”

“If the situation in Ukraine worsens even further, bitcoin could fall below $30,000 as investors move into defensive assets,” FxPro senior financial analyst Alex Kuptsikevich said in email comments. , emphasizing reports Russia could use cryptocurrency to circumvent sanctions. “Otherwise, the country will not survive the growing sanctions pressure from Western countries.”

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However, other members of the bitcoin and crypto community believe his unlikely bitcoin could be used by Russia to evade global sanctions.

“The suggestion that Russia might be using bitcoin to evade sanctions is mostly media hype,” Cory Klippsten, managing director of bitcoin shopping app Swan Bitcoin, said via Telegram.

“Technically Russia could use bitcoin given its open and permissionless nature, but there are methods for agencies to track bitcoin transactions. It is important to note that bitcoin is a technology available to everyone, that you either agree with their actions or you don’t.”

Nearly $14 million has so far been donated to Ukraine’s war effort through anonymous bitcoin donations, according to researchers at Elliptic, a blockchain analytics firm.

On Saturday, the Ukrainian government’s official Twitter account posted, “Stand with the people of Ukraine. Accept cryptocurrency donations now. Bitcoin, Ethereum and USDT”, a stablecoin pegged to the US dollar. Addresses of two cryptocurrency wallets collected millions of dollars in bitcoin, ethereum in just a few hours.

“Around the world, the demand for bitcoins continues to rise as the need for a decentralized, censorship-resistant store of value becomes more evident by the day,” Klippsten added.


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