As the war in Ukraine continues, the price of cryptocurrency has risen.
Although global markets have been up and down since Russia invaded the country last week, the price of bitcoin was up 6% over the previous 24 hours to $44,219.50 on Tuesday. KCBS Radio Moneywatch Editor Jason Brooks, who also hosts the global politics podcast "The Crisis Next Door," joined "Bay Current" on Tuesday to explain how cryptocurrencies could help wealthier Russians – and the country's oligarchs – hide their income.
"I've been amazed that the market has held on this well despite the uncertainty," Brooks said Tuesday of the price of cryptocurrency. "We are seeing this reality when we look at the price of oil. It’s trading at its highest level since 2014."
The hike in oil prices is partially due to market fears of a dwindling global supply stemming from further sanctions on Russia, Brooks added.
"Russia pumps out a lot of oil and a lot of natural gas, and despite the sanctions that the West has leveled against Russia, they have not touched Russia’s gas exports," Brooks noted. "We already have high gas prices, and these are critical issues for economies around the world. If there are sanctions on Russia's oil, we could see the price rise even more."
Although cryptocurrency prices were down last week, they have rebounded since the invasion of Ukraine. Brooks said that this could be because of Russia's high investment in bitcoin and other cryptocurrencies, which could help the country evade suctions.
"It's an unregulated source of money, and Russia happens to be one of the biggest countries when it comes to crypto-mining," Brooks noted. "Russia’s central bank has had divided opinions on crypto, but it is a way to move money around and offer an out for (President Vladimir) Putin and the oligarchs."
"The fact that cryptocurrency is rising has gone against what the recent narrative has assumed," he added. "There could be people of means in Russia using bitcoin as a safe haven. But crypto is volatile, and hackers have stolen tremendous amounts of cryptocurrency. Russian oligarchs could be subjected to that."
Related
LISTEN on the Audacy App
Sign Up and Follow Audacy
Facebook | Twitter | Instagram