Russia Turns to Crypto, Bitcoin Price Reaches IDR 631.4 Million Per Piece

JAKARTA, KOMPAS.com – Market cryptocurrency or cryptocurrency still continuing its strengthening in today’s morning trading session, Wednesday (2/3/2022). This strengthening trend is in line with the fall of the Russian currency, the ruble.

Many investors choose to switch from rubles to crypto assets. The reason is, despite having high volatility, cryptocurrencies are considered more resistant to geopolitical tensions between countries.

With this transition, major cryptocurrencies are observed to continue to strengthen. Bitcoin, for example, the cryptocurrency with the largest market capitalization, strengthened 2.21 percent in the morning trading session to the level of 44,029 US dollars, or the equivalent of Rp. 631.4 million per chip.

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Not only bitcoin, the shift to crypto has also boosted another giant crypto, ethereum. In the morning trading session, ethereum was still up 0.5 percent to the level of 2,926 US dollars per chip.

The Arcane research institute states, in fact, most people prefer to switch to tether rather than bitcoin. The reason is, tether is known as a stable cryptocurrency with a price equivalent to 1 US dollar.

“In the current market conditions, I’m not surprised to see investors, in Russia at least, looking for stable coins. This is about how they save their funds, not investments,” said Arcane’s head of research, Bendik Schei, as quoted by CNN, Wednesday.

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As is known, various sanctions imposed by “Western countries” on Russia have made the ruble exchange rate decline. In fact, earlier this week, the ruble had fallen to the level of 104 rubles per US dollar.

In addition, the European Union has frozen the assets of Russia’s central bank, with the aim of cutting off Russia’s access to funding. With the central bank’s assets frozen, Russia was unable to access assets in the form of US dollars to cushion the impact of the decline in the ruble.

Also read: Bitcoin and friends continue to strengthen, check today’s crypto prices

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