Ukraine: Increased volume of cryptocurrency trading
Cryptocurrency research firm Arcane Research wrote in its latest weekly update that there have been huge increases in cryptocurrency trading volumes using Ukrainian fiat currency. Meanwhile, the company has identified $ 47,000 as the next likely target for bitcoin (BTC) after the $ 44,000 resistance was breached.
Increase in cryptocurrency trading volumes
Arcane wrote in his report that “many Ukrainians fear that the banking system in the country may collapse and are looking at cryptocurrencies as a safe haven for their savings.”
He added that thanks to the invention of cryptocurrencies, Ukrainians “now have the opportunity to flee the country and take part of their wealth with them”.
He also said that both bitcoin and tether (USDT) trading versus Ukrainian hryvnia on cryptocurrency exchange Binance have seen “huge increases” in volume.
Meanwhile, Arcane also commented on the sharp increase in cryptocurrency trading volumes with Russian rubles, saying it is possible that more Russians have now discovered how stablecoins, like tether, can offer an escape from their local fiat currency.
“These volume increases could indicate that Russians are looking for stablecoins to gain exposure to the dollar ahead of possible sanctions targeting Russian cryptocurrency traders,” the report said.
However, he also warned that the data does not necessarily mean that Russians are now entering the cryptocurrency sector, noting that it could also be the result of “market makers trying to eliminate their exposure to the ruble.”
47,000 USD is the next target for Bitcoin
Commenting on the price of bitcoin from a technical point of view, Arcane said the USD 40,000 level was tested throughout the weekend, calling the turn above that level on Monday “convincing”.
Subsequently, he stated that USD 44,000 remains an important resistance level that bitcoin “has yet to break convincingly”. If the level breaks convincingly, USD 47,000 is the next major resistance, Arcane wrote, adding that USD 40,000 now serves as the first line of bearish support.
Finally, the Arcane researchers pointed out that the dominance of bitcoin – or the share of bitcoin in the overall capitalization of the cryptocurrency market – has increased “significantly” since the start of the war in Ukraine.
From a low of 33.9% in mid-January, bitcoin dominance stood at 41.1% at 12:26 UTC, down slightly from 43% when the Arcane report was released.