Crypto Market Changes And The Russia/Ukraine Conflict
The conflict between Russia and Ukraine, which erupted on February 24, 2022, when Russia launched a full-scale assault on Ukraine, is not the first war to be waged in the age of cryptocurrency.
However, it is the first war in which crypto has played a prominent role. In fact, it has been dubbed “The World’s First Crypto War.”
On the Ukrainian side, donations have brought in more than $50 million in cryptocurrency, which the government has said will be used to purchase critical supplies.
On the Russian side, the purchase of cryptocurrency with rubles increased dramatically in the early days of the war, signaling what some perceive as a move by Russia to get around the financial sanctions being imposed on it by governments around the world.
While it remains to be seen what effect crypto will have on the outcome of the conflict, it has already become clear that the conflict is affecting the value of crypto.
In the early hours of the war, the total crypto market lost approximately 5 percent in 24 hours. Bitcoin fell from $37,000 to $35,500 in less than half an hour.
“Even though war is never as good initially for any particular market, oftentimes markets generally do recover after the announcement of an overall war,” says Jerremy Newsome, CEO of Real Life Trading and a top expert in the field of stock market education.
Real Life Trading is a trading education platform that helps new traders to trade profitably in both stock and crypto markets by providing courses and mentoring.
Providing support for what he calls “Buy the Invasion,” Newsome cites a pattern of dip and recovery shown in markets during the Vietnam War, the Gulf War, the Afghanistan War, the Iraq War, and the Crimean Crisis.
The initial dip of Ethereum at the start of the Russia/Ukraine conflict in late February mirrored the coin’s behavior one month earlier, explains Newsome.
At that time, the dip was followed by a considerable increase in value.