Cryptocurrency prices today: Bitcoin emerges as safe haven after Russia invades Ukraine

tech.hindustantimes.com:

Cryptocurrency prices today: Bitcoin price has surged as investors again appear to view the volatile cryptocurrency as a safe haven for their money and Russians and Ukrainians seek alternatives to their country's financial institutions. After initially falling to around $34,000 following Russia's advance into Ukraine last week, Bitcoin price pushed about 10% higher on Monday and is now up more than 25% in the past week, to $43,900 Wednesday afternoon. Other cryptocurrencies have also soared.

Russians are exchanging their rapidly devalued rubles for bitcoin to try and mitigate the impact of the economic sanctions imposed by the international communities for their country's attack on Ukraine. The Ukrainian government has limited its citizens' ability to conduct electronic fund transactions, so Ukrainians are also turning to bitcoin and other cryptocurrencies. They're also buying stablecoins whose values are pegged to the U.S. dollar.

Prior to the Russian invasion, bitcoin had been trading in a way similar to other riskier assets such as technology stocks. Investors have been expecting the Federal Reserve to soon begin raising interest rates in response to high inflation. They moved money out of more speculative investments such as bitcoin and bought stocks of banks other industries that tend to perform well when rates are rising.

That changed after the invasion when Western countries responded with a series of steps that limit the ability of Russia's government and the country's oligarchs to access the financial systems. Those moves have spillover effects for Russia's citizens, who have been lining up at banks and ATMs to withdraw money.

Blockchain data and analytics firm Coin Metrics says trading volume in bitcoin in exchange