Ukrainians Are Getting $3K More For Bitcoins As Cash Withdrawal Limits Imposed

Crypto activities in Ukraine continue to grow as the ongoing war pushes them higher.

As per currently available data sources, crypto exchanges in Ukraine are experiencing increased crypto trading activities. During the few days, the demand for digital assets, particularly Bitcoin and Tether, increased and resulted in a rise in the value of those currencies compared to the local currency of Ukraine, Hryvnia.

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Due to the recent war, the National Bank of Ukraine decided to restrict daily cash outflow and limit cash withdrawal up to 100,000 hryvnias ($3,350). 

However, the cash withdrawal restriction proved a potent stimulator of crypto trading activities in Ukraine. For example, Kuna, a Ukraine-placed cryptocurrency exchange providing trading facility in the local currency hryvnia and the Russian currency ruble, observed a rise in the trading volume soon after the statement of February 24, 2022.  

The data analysis of crypto exchange Coingecko shows its trading volume soared from $1.4 million to $4.8 million, with the highest trading pair in hryvnia (UAH). This rise was the highest in the crypto exchange platform since May 2021. 

Increase In Demand For Bitcoin, Ethereum, And Tether

The demand for digital assets, particularly Bitcoin, Ethereum, and Tether, increased and constantly pushed their values higher than other countries. 

The exchange data shows that Bitcoin on Kuna traded as high as $42,106, $3,000 higher than the other crypto exchanges. On the other hand, Tether had been trading as low as $1.08, in contrast to the average price of $0.99 on the different cryptocurrency exchanges. 

Bitcoin is 3.2% down since day started | Source: BTC/USD chart on Tradingview.com

Data analysis of Localbitcoins.com depicts selling price of Bitcoin remained higher up to $43,480 per coin in Ukraine. 

Related Readings | Ukraine Says It has Received Crypto Donation Requests, Is Crypto Good For War?

The crypto statics depicts higher demand for digital assets in Ukraine while demand for local currency is constantly declining. As per Micheal Chobanian, founder of Kuna Exchange, most people in Ukraine do not have any money choice other than crypto. 

It is essential to note that many Ukrainian citizens have proved that their precious crypto investments undoubtedly helped them in this difficult time.  

Earlier to the recent war, Ukraine was one of those few countries that have supported cryptocurrency development in the country. The government of Ukraine recently legalized crypto to facilitate the investors and business entities for developing cryptocurrency circulation. 

Many Non Governmental Organizations (NGOs), Volunteer groups, and charity institutions have acquired donations in the form of cryptocurrency during recent war attacks.  

“We care about the people.” CEO Binance said this when announcing their new donation and fund to help out in Ukraine. The world’s largest cryptocurrency exchange by volume has just announced that they will be donating 10 million dollars, providing on-the-ground support.

               Featured image from Pixabay and chart from TradingView.com