Bitcoin (CRYPTO: BTC) has gained a whopping 40% premium on Russian markets, as more people in the country turn to popular cryptocurrencies in the wake of global financial sanctions against their country over its invasion of Ukraine.
What Happened: The supply of active Bitcoins has surged in Russia as its banks get cut off from the Society of Worldwide Interbank Financial Telecommunications (SWIFT) and the value of the ruble craters, according to Delphi Digital.
Bitcoin Supply Last Active (<24 hours) V Supply Held By Addresses With 0.001 – 10 BTC Balance
The on-chain analytics firm said that the supply of active BTC — a measure of the apex coin’s movement in the past 24 hours — rose to a more than year’s high of 565,000 tokens this month.
A sharp uptick was noted in BTC held by smaller addresses (0.001 – 10 BTC), which Delphi Digital said could be “a result of capital flight from the ruble to BTC.”
See Also: How To Buy Bitcoin (BTC)
Why It Matters: It was reported previously that the high demand for Bitcoin after Russia invaded Ukraine has led to the apex cryptocurrency gaining a premium in both countries.
Typically there is a gap in the price of Bitcoin on South Korean exchanges compared to global peers, referred to as the “Kimchi” premium.
The Russia-Ukraine conflict could very well result in the emergence of a “Vodka” premium, as the teeth of sanctions bite deeper into Russia.
Kimchi premium is now Vodka premium$BTC now trading at about 40% premium in Russia
Digital SOV is real pic.twitter.com/K3UbEx6ytA
— AlphaMerlion⛩ (@AlphaMerlion) March 1, 2022
Recently, Russian banks also lost access to the payment networks operated by Mastercard Inc (NYSE: MA) and Visa Inc (NYSE: V).
Price Action: At press time, BTC traded 3% lower at $38,419.73 over 24 hours.
Read Next: Why Coinbase Is Against Banning All Russians From Crypto Exchange
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