Why War and Sanctions Are Good for Bitcoin

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Illustration by Elias Stein

Russia’s invasion of Ukraine is pressuring equities, pumping up oil prices, and scrambling Federal Reserve plans to raise rates. Through it all, Bitcoin has been rising, up around 13% to $39,500 since fighting broke out.

The crypto may be benefitting from demand as a currency or store of value in countries hit by war and sanctions. Bitcoin purchases in Russia and Ukraine have picked up. Demand for stablecoins, which aim to maintain a fixed $1 value, has also been rising. And crypto is being deployed to aid Ukraine: Some $55…