LONDON (Reuters) – Cryptocurrencies have been near the headlines since Russia invaded Ukraine, with the ever-volatile bitcoin in demand in Russia and past.
Here are some charts that have a look at how cryptocurrencies have fared throughout the largest assault on a European nation since World War Two.
CORRELATION CONUNDRUM
Correlated or not? That’s lengthy been the query for bitcoin, with the unique cryptocurrency at occasions marching to the fairness beat — and at different occasions not.
Bitcoin initially slumped after Russia launched its assault on Ukraine as traders dumped riskier belongings, falling as a lot as 8% on Thursday earlier than clawing again losses on the day. European shares fell 3.3% whereas the S&P 500 added 1.5%.
The paths of bitcoin and shares have since entwined once more, albeit to differing levels.
Bitcoin jumped 14.5% on Monday in its greatest day in a 12 months, and now stands up 12% for the reason that day earlier than the invasion started on Feb. 24. U.S. shares have made smaller features, with the S&P 500 edging up 3.3%. MSCI’s world index is down barely.
“It’s nonetheless largely been correlated with U.S. equities all through this disaster,” Joseph Edwards, head of monetary technique at crypto agency Solrise Group, stated of bitcoin.
Graphic: Cryptocurrencies throughout Russia’s war- https://fingfx.thomsonreuters.com/gfx/mkt/znpnenjmbvl/Crypto%20duringpercent20Russia’s%20war.PNG
Graphic: Bitcoin and stocks- https://tmsnrt.rs/3CrDg41
A SAFE HAVEN?
Crypto aficionados see bitcoin as “digital gold,” a useful place to retailer money throughout war or catastrophe. Bitcoin, the argument goes, has a restricted provide and runs on a world laptop community past the attain of governments and is due to this fact safer than conventional currencies.
Things are by no means that easy. Bitcoin’s safe-haven chops are unclear: It typically behaves extra like risk-on belongings equivalent to shares.
Investors say that throughout the war bitcoin’s traits have stoked demand and helped it outperform different conventional havens. Gold is up 2.6% whereas the U.S. 10-year Treasury yield has fallen 8.7% since final Wednesday.
Yet the strikes could do little to settle arguments over bitcoin’s safe-haven credentials, analysts stated.
“We do not suppose BTC is being considered as a secure haven, nor must be, however as an alternative its attraction is it is a provide capped, credit score free, digital bearer asset that’s proving to be a viable various to conventional finance in this present atmosphere,” stated Richard Usher at crypto agency BCB Group.
“If the state of affairs continues to escalate and danger markets badly endure it is going to wrestle to rally additional, however in our view nonetheless outperform.”
Graphic: Bitcoin and secure havens- https://fingfx.thomsonreuters.com/gfx/mkt/jnvweblrxvw/Bitcoin%20andpercent20safepercent20havens.PNG
ROUBLE ROUTED, BITCOIN BOUNCES
Crypto buying and selling in Russia has soared because the rouble was battered by Western sanctions which goal to squeeze Russia’s economic system and sever it from the worldwide monetary system.
The Russian foreign money hit an all-time low of 118.35 per greenback on Thursday.
Trading volumes between the rouble and main cryptocurrencies hit 15.3 billion roubles ($140.7 million) on Monday, a three-fold leap from a week earlier, based on researcher CryptoEvaluate.
Rouble-denominated trades with Tether — a so-called stablecoin designed to maintain a regular worth — hit 3.3 billion roubles on Monday, their highest this 12 months and nearly 5 occasions greater than a week earlier, the info confirmed.
The figures counsel that persons are scrambling to covert financial savings to crypto in Russia.
The war has contributed to the narrative that bitcoin “isn’t just a speculative asset, it is usually a seizure-resistant, policy-independent, longer-term retailer of worth,” stated Noelle Acheson, head of Market Insights at New York-based Genesis.
Graphic: Sell roubles purchase crypto- https://fingfx.thomsonreuters.com/gfx/mkt/byprjexdxpe/Sell%20roublespercent20buypercent20crypto.PNG
(Reporting by Tom Wilson and Elizabeth Howcroft; modifying by Jonathan Oatis)
by 
