The trading volume of bitcoin in rubles increased four times due to the Russian attacks. In the last month, against a 14% appreciation of bitcoin, S&P 500 crumbled down at least 6%.
The recent changes the markets suffered amid the attacks led by Russia in Ukraine have caused various effects on the bitcoin and cryptocurrency environment compared to traditional markets.
While the bitcoin market’s first response to the Russian attacks over Ukraine was a bit somber, differences appeared between those environments, along with their usual differences between them and other conventional values. This divergence favors the argument that describes bitcoin as a haven asset and could take advantage of an increase in its price.
This Tuesday, various indicators highlighted some views about the divergence between bitcoin and the S&P 500 index, representing the behavior of such shares of the top standard companies and entities.
The correlation between BTC and the S&P 500 index has slightly fluctuated from 0.35 in mid-December to a high peak valued at 0.55 last week. A decay valued at 0.45 appeared to show less integration between bitcoin and other standard stocks.
In 2021, the correlation between bitcoin and the S&P 500 went through adverse fluctuations. However, as of the end of January 2022, the correlation increased. While the bitcoin price increased recently, the S&P 500 faced decay, and the correlation between the two went through unfavorable fluctuations.
On January 30, a maximum of the mentioned correlation of 0.8 made an entrance. On February 24, the correlation presented an unfavorable fluctuation; various parameters presented divergent behavior from the variables involved in the study.
Bitcoin Keeps a Prudent Distance from Standard Assets
A report made by Kaiko explained that the correlation of a currency like bitcoin with Nasdaq and S&P 500 approached its maximum worth, an equal worth this asset came to experience back in July 2020. Bitcoin also harmonized its recent growth with a rebound in commodities or strengthening its features regarding a store of value.
The reversal of this situation between bitcoin and conventional stocks reached a relevant point because of the Russian attacks over Ukraine. The financial punishments led by countries, including the US against Russia, caused a growth in implementing bitcoin in that nation. At the same time, this cryptocurrency is quite helpful in Ukraine when it comes to receiving money as donations from other parts of the world.
Both nations in the conflict describe bitcoin as a haven asset to boost their financial power and as a method to store their value during this difficult time. Binance data shows the daily volume in the Bitcoin-ruble pair (BTCRUB), which is usually down the $5 million and approached a new high peak on February 24, marking almost $18 million.
By: Jenson Nuñez
