While the ruble devalued against the dollar, bitcoin rebounded against the U.S. currency. It is yet to see how things will evolve concerning oil and gas and the cost of energy.
Bitcoin is worth more than all of Russia’s circulating money. Among the effects of the war and the economic crisis in Russia due to the sanctions imposed by the U.S. and European countries, the ruble has fallen 24% against the U.S. dollar in one week. Since bitcoin (BTC) has rebounded in the last seven days, the total ruble circulating now has a dollar value lower than bitcoin’s market capitalization.
According to the information in the Central Bank of Russia, the total ruble circulating currency, or M2 money supply, was 65.31 trillion rubles in January of this year, when one dollar was equivalent to 83 rubles. This Tuesday, February 1, traders required 110 rubles to obtain one dollar due to the devaluation of the Russian national currency.
As a result, the circulating RUB 65.3 trillion would be equivalent to $593,720 billion today. A figure that is 40% below Bitcoin’s market capitalization, which is $835,260 billion at this moment.
Russian ruble vs. Bitcoin
It is worth noting that a week ago, before the outbreak of hostilities, bitcoin’s capitalization was $727 billion, while the M2 money supply of rubles was equivalent to $783 billion. In other words, the total ruble money supply exceeded the bitcoin capitalization by 8%. Now, in a matter of days, the picture is different, and it would seem that the monetary capital of a powerhouse like Russia is not being counted.
The ruble’s depreciation against the dollar was 24% in one week, and the bitcoin price increased by 25% in the same period. Combining the two factors led Bitcoin’s market value to surpass the Russian ruble in circulation.
Accordingly, the bitcoin price in rubles experienced an additional rally on Tuesday and set a new all-time high of RUB 4,888,185. Bitcoin appreciated 50% in rubles, compared to the relatively stable value on February 24. The loss of the ruble’s value on international markets is noticeable, especially in the face of a new money alternative such as Bitcoin.