Jakarta, CNBC Indonesia – The predictions of the former deputy governor of the Central Bank of Russia came true. The financial market of the Red Bear Country experienced a “catastrophe” in trading Monday (28/2/2022) local time. This makes analysts predict that crypto assets, which were also under pressure this month, will again collapse.
Launching Refinitiv data, bitcoin at 18:02 WIB was trading at around US$ 38,417/coin. Throughout this month up to that level bitcoin stagnated from the position at the end of January. However, the cryptocurrency with the largest market capitalization has fluctuated throughout this month, briefly rising to the range of US$ 45,855/coin, and falling to US$ 34,320/coin.
Prior to this month, bitcoin had slumped for the third straight month. Bitcoin that is billed as digital gold doesn’t actually behave like an asset safe haven the.
When Russia launched its first attack on Ukraine, bitcoin actually fell to the range of US $ 34,000/coin.
“Bitcoin conditions are still volatile, and the level of US$ 40,000 is still a resistance. Unless that level can be passed convincingly, bitcoin is likely to fall back to its current range even more to US $ 30,000/coin in the short term it is still possible,” said Mikkel Morch as executive director at Fund ARK36, as reported by ForbesSunday (28/2/2022).
Alex Kuptsikevich, senior financial analyst at FxPro said the same thing. He even said that if the situation in Ukraine escalated further, bitcoin could fall below US$ 30,000/coin.
“If the situation in Ukraine worsens, bitcoin is likely to sink below $30,000/coin as investors will turn to defensive assets,” Kuptsikevich said.
As is known, Russia launched an invasion of Ukraine since last Thursday. As a result, the United States and other western countries imposed economic sanctions.
One of the sanctions imposed was that Russia was excluded from the international banking information network known as SWIF (Society for Worldwide Interbank Financial Telecommunication), which is a kind of social networking platform for banks. Through SWIFT, the world’s banks that are members of it can exchange information about the movement of money.
SWIFT has now connected more than 11 thousand financial institutions in more than 200 countries so that financial transactions between countries can be carried out.
Sergei Aleksashenko, a former deputy governor of the Central Bank of Russia, said that his country’s financial markets were in dire straits as a result of being excluded from SWIFT.
“That means there will be havoc on the Russian currency market on Monday,” Aleksashenko told Reuters on Sunday.
Sure enough, the Russian ruble immediately fell 30% to above RUB 110/US$ which is the weakest record in history.
The collapse of the ruble made the Central Bank of Russia take extreme steps by raising interest rates to 20% from the previous 9.5%.
“The impact of the external situation on the Russian economy has changed drastically. An increase in the benchmark interest rate will keep deposit rates at an adequate level to cover the risk of exchange rate depreciation and inflation,” said a written statement from the Central Bank of Russia.
CNBC INDONESIA RESEARCH TEAM
(pap/pap)
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