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(Kitco News) - Tensions in the geopolitical landscape continue to rise as this past weekend saw a brief military coup attempt in Russia led by Yevgeny Prigozhin, the head of the Wagner Group, which threatened the stability of the East European nation amid its ongoing military campaign in Ukraine.
As the events unfolded, investors kept one eye on global asset markets as the threat of an escalation in fighting with potential nuclear ramifications had many worried that asset prices would dump as traders fled the market ahead of a greater conflict.
For the cryptocurrency market, the rapidly unfolding story led to a spike in trading and an uptrend in prices as investors – especially those in Russia – sought out safe-haven assets to provide shelter from the potential ramifications but had limited options due to most markets being closed on the weekend.
Evidence of a spike in crypto-related activity for ruble holders can be found in the trading volumes of USDT/RUB currency pairs, which spiked it $8.53 billion, according to data provided by The Block.
Total daily ruble volume for USDT/RUB pairs. Source: The Block
Bitcoin (BTC) continued to hold between $30,000 and $31,000 as the events of the weekend unfolded, still buffered by the recent spot BTC ETF filings and a resurgence in interest from institutional investors.
BTC/USD Chart by TradingView
As news of the Russian coup circulated, the price of BTC initially slid lower but then reversed and climbed higher as traders turned to the one asset that was readily available for trading.
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By Sunday afternoon, the coup was all but disbanded, and Prigozhin had agreed to go into exile in Belarus and won’t face charges in Russia related to the developments.
This led to some selling pressure for Bitcoin as the concerns that pushed many to buy it over the weekend abated. Bitcoin price briefly broke below support at $30,000 in the early hours on Monday but has since recovered above $30,450 – after hitting a daily high of $30,745 – as investors continue to migrate towards safe-haven assets.
As an interesting aside, trading activity for BTC/RUB pairs saw a spike several days prior to Saturday’s events, suggesting that some people may have had foreknowledge of the event and sought to position themselves prior to the coup attempt going down.
Total daily ruble volume for BTC/RUB pairs. Source: The Block
