Crypto market update: Rally as sanctions against Russia limited
The leading cryptos are rebounding from recent losses today
Investors are rallying again on both the crypto and traditional markets, after US and EU sanctions against Russia proved to be limited.
The sanctions that have been imposed still substantially allow energy exports to continue, while European institutions baulked at shutting Russia out of SWIFT, the global interbank payments network.
While traditional stock markets are rebounding, with profit-taking weighing on commodities prices, pressure on the Russian rouble has eased – the USD/RUB pair is currently at 82.28, down by 2.5% in the last 24 hours – despite USD remaining strong, with the US dollar index at 96.85.
“The stunning reversal by US equity markets, gold and to a lesser extent, oil is telling. The new round of sanctions announced by the US, Europe and the UK amongst others was notable for two things,” said Jeffrey Halley, senior market analyst at Oanda.
“Firstly, in President Biden’s own words, the mechanisms were there for energy exports to continue. Secondly, the Europeans baulked at shutting Russia out of SWIFT, the global interbank payments network. President Biden also made great store out of an impending global strategic petroleum reserve release,” he said.
“So, the limits to the economic pain that the West was prepared to tolerate to support Ukraine and punish Russia have been revealed within 24 hours of Russia’s offensive beginning. Timing is everything: the Russian offensive has occurred in a time of already high inflation and commodity shortages globally, and the West has blinked immediately,” he said.
According to Currency.com, BTC, the largest cryptocurrency by market capitalisation, is trading 10.4% higher over the past 24 hours at $39,255.06 – but 2.8% lower over the past seven days.
The market cap of BTC was around $744.5bn, representing around 41.8% of the crypto market capitalisation, while the leading crypto’s trading volume was around 4.4% lower at $37.3bn in the past 24 hours.
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The total crypto market capitalisation rose by around $167bn from $1.586trn to $1.753trn in the past 24 hours.
In line with other major cryptos, ether (ETH) was trading 12.7% higher at $2,693.80, with a market capitalisation of $323.3bn. The cryptocurrency’s trading volume was around 3.7% lower at $21.8bn in the past 24 hours.
Meanwhile, binance coin (BNB), now the fourth-largest cryptocurrency by market capitalisation after the USD backed stablecoin Tether ($79.5bn), was trading 9.9% higher at $369.10, with a market cap of $61bn and a trading volume of $2.3bn – almost 28% higher in the past 24 hours.
Solana (SOL), one of Ethereum’s main competitors in terms of powering NFTs and the metaverse, was trading 11.6% lower at $79.78, with a market cap of $25.6bn and a trading volume of $6.7bn, 5.7% lower in the last 24 hours.
Finally, Cardano (ADA) was trading 13% higher at $0.8734.
Top gainers and losers
Elsewhere, the likes of Amp (AMP), Gala Games (GALA) and Terra (Luna) witnessed increases of over 20% in the last 24 hours.
On the other hand, TerraUSD (UST) was one of the few coins trading lower – but only by 0.1%.
All cryptocurrency prices correct as of 14:30 GMT (UT).