Tether USDT Sees Record Volumes Amid Russia-Ukraine Conflict
• The Wagner Group’s revolt in Russia caused a heightened state of political-economic uncertainty which may have prompted many to buy into other assets.
• Tether’s USDT represents one of the easiest routes, especially after the sanctions imposed on Russia by NATO and the U.S.
• A Kaiko analysis looks at how Rubble and Tether USDT volumes fared during noteworthy events involving Russia, with the most recent volume spike being observed right after the Wagner revolt.
The Impact of Political Factors on Crypto Currencies
The conflict between Russia and Ukraine is an example of just how much political factors can influence fiat and crypto performance. This has been particularly true for the Russian Rubble and Tether’s USDT currency pair.
Wagner Revolt Causes Heightened Uncertainty
The Wagner Group, a private military group based in Russia recently rebelled against the Russian government, causing a heightened state of political-economic uncertainty, likely prompting many to buy into other assets. As sanctions had been imposed on Russia by NATO and the U.S., USDT represented one of the easiest routes for those looking to exit Rubble positions in favor of assets that are better positioned to hold value during turmoil.
Kaiko Analysis Looks at Volume Spikes
A recent Kaiko analysis looked at how Rubble and Tether USDT volumes faired during noteworthy events involving Russia, with a particular focus on the volume spike that was observed right after the Wagner revolt – which was second only to January 2023 in terms of highest recorded volumes for this currency pair over two years.
Liquidity Flowing Out Of Rubble Positions
Many traders appeared to be taking advantage of expected losses in value for Rubble due to this event, moving liquidity out of their positions into more stable assets such as USDT. This volume spike was initially observed on 23 June – coinciding with other newsworthy events related to strife within Russia’s borders around this time period too.
This article highlights just how much global politics and economics can affect various fiat currencies when paired with crypto currencies such as Tether’s USDT – especially when there is heightened political-economic uncertainty due to civil unrest or international conflicts such as those seen between Russia and Ukraine lately.