Bitcoin and Ethereum Trading at a Discount in Russia as Ruble Plummets

  • Both Bitcoin and Ethereum are currently trading at a discount in Russia, at a time in which the Russian Rubble is plummeting over US sanctions
  • Behind the trend may be  a feigning interest in cryptocurrencies, although prices are currently rising

Bitcoin and Ethereum, the top two cryptocurrencies by market cap, are currently trading at a significant discount in Russia, at a time in which the country’s fiat currency, the Ruble, is plummeting

According to data from CryptoCompare, Bitcoin is currently trading for 425,550 RUR, worth roughly $6,680. On average, the cryptocurrency is trading for $6,880. Ethereum, on the other hand, is currently going for 26,060 RUR, worth about $408, while worldwide, on average, the cryptocurrency is trading for $417.

Both cryptocurrencies are up by little over 5 percent against the Ruble, as the fiat currency has recently started plummeting after Donald Trump’s administration imposed new sanctions on 24 wealthy Russian and government officials. The sanctions affect over a dozen Russian-controlled entities.

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Reasons for the discount are, at press time, unclear as cryptocurrencies often trade at a premium when fiat currencies start losing value. Bitcoin and Ethereum are both rising fast against the ruble, which may mean the trend will soon change.

Analysts believe the Ruble will keep plummeting, as according to Business Insider new confrontations between the US and Russia may soon arise. Per Michael Hewson, chief market analyst at CMC Markets UK:

"Coming on the back of events in Salisbury last month and the use of a nerve agent there, and the fact that renowned Russia hawk John Bolton started his role as National Security Advisor in the White House yesterday, the risk is that last weekend’s measures may only be the start to financially ostracize Russia.”

Michael Hewson

If Hewson’s right, Bitcoin and other cryptocurrencies may soon start trading at a premium against the Ruble. Notably, historical data shows the flagship cryptocurrency was trading at a 24-hour low of about $6,200 against the fiat currency.

The discount may potentially be justified using Google Trends data, as it shows search interest for “Криптовалюта” (cryptocurrency) has recently plummeted.

 

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While the motives behind it plummeting are still unclear, the discount is quickly disappearing at press time. Updated data from April 9-11, not yet available, may paint a different picture.

Bitcoin’s Price Surges Nearly 10% to Surpass $8,000 as Crypto Market Adds $20 Billion

The price of bitcoin, the flagship cryptocurrency, has recently surpassed the $8,000 mark in a move some believe is extremely bullish and could help it go up to $20,000. What’s behind the rise is unclear, although a counter trading indicator pointed towards it.

At press time, BTC is trading at $8,055 after rising 10% in the last 24-hour period, according to CryptoCompare data. The flagship cryptocurrency’s market cap is now of $142 billion, and its recovery came merely days after it had a $1,000 ‘flash crash’ caused by a 5,000 BTC sell order.

Bitcoin's price performance in the last 24-hour period

It’s currently unclear what’s behind the cryptocurrency’s rise, although some have pointed out tensions between the United States and China may be helping, as bitcoinj’s price has been moving up when trading volumes are higher on Asian exchanges.

The U.S. recently hiked tariffs on $200 billion worth of Chinese goods, with China retaliating with higher levies on billions of dollars worth of U.S. products. These developments severely affected the stock market, and could be seeing investors hedge with bitcoin and other cryptocurrencies.

Notably, some could have predicted BTC would surpass the $8,000 mark this weekend as CNBC’s Fast Money Twitter account recently posted a bearish tweet showing a head and shoulders pattern, which implied a drop was imminent.

In the cryptocurrency space CNBC’s tweets are seen as a counter trading indicator, as often bitcoin does the exact opposite of what the financial news outlet’s social media accounts predict will happen.

The cryptocurrency’s price rise also comes as search interest for it hits a 14-month high, according to Google Trends data. This means that search interest for BTC hasn’t been this high since February of last year, when it was trading between $8,000 and $11,000.

Mati Greenspan, a senior market analyst at eToro, has noted the cryptocurrency’s price performance is bullish, and that there could be “virtually no major levels of resistance until $20,000.”

Recently, the co-founder and CEO of digital asset exchange Gemini, Tyler Winklevoss, called bitcoin “gold 2.0.” Facebook has also shown it’s getting more serious about blockchain, cryptocurrencies, and payments, which could be heightening interest in the space.

Bob Iaccino, an experience fun manager and veteran trader, has earlier this week argued that the growth of BTC’s layer-two scaling solution, the Lightning Network (LN), could also be supporting the cryptocurrency’s rally.

Altcoins Follow Bitcoin’s Rally

Available data shows that most altcoins have followed the flagship cryptocurrency’s rally, with most being up well over 3% in the last 24-hour period. Top altcoins like Ethereum’s ether, litecoin, XRP, and Zcash are all up by over 7%, with ether rising nearly 10% to trade at $258.

Interestingly Bitcoin Cash, a cryptocurrency that has recently seen a hacker take advantage of an upgrade to get miners to mine empty blocks and that has seen a mining pool have over 51% of its hashrate for a brief period, has risen over 16% in the same period. BCH is currently trading at $415.

Dash and Cosmos are other cryptocurrencies that have risen over 10% in said period. Overall the rally has seen the crypto market add over $20 billion.