[Bitcoin Now] Surges 14% in One Day... Russian Buyers React to Economic Sanctions

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, which had been weak amid the Ukraine crisis, surged more than 14% in a single day. Analysts attribute the price increase to a large-scale purchase by Russians following the strengthening of economic sanctions against Russia by major countries including the United States.

According to cryptocurrency market tracking site CoinMarketCap, as of 2:05 PM on the 1st, the price of Bitcoin was trading at $43,335 (approximately 52.2 million KRW), up 14.41% from the previous day.

It is analyzed that the Bitcoin price rose as Russians bought Bitcoin amid the collapse of the Russian ruble's value. Earlier, the United States and Western European countries decided to exclude Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment network. Being excluded from SWIFT, which is used by over 11,000 major banks and financial institutions worldwide, effectively removes Russia from the international financial network. Following these sanctions, the ruble's value plummeted. The New York Post reported, "Russians have concerns about their currency and financial system, so they may see Bitcoin as a means to protect their deposits."

As Bitcoin prices surged, investor sentiment also revived. Dunamu, the operator of Upbit, reported that its Digital Asset Fear & Greed Index stood at 56.68, indicating a 'neutral' stage as of 2 PM that day. This marks an increase of 20.65 from 36.03 (fear) recorded on the 27th of last month. Dunamu's Digital Asset Fear & Greed Index is divided into stages: 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. A movement toward greed indicates increased buying interest, while a movement toward fear signals a chain reaction of market exits leading to price declines.

This content was produced with the assistance of AI translation services.