The crypto economy lost more than 11% against the U.S. Dollar during the trading hours on Thursday morning (EST). The most popular crypto asset, bitcoin, lost nearly 10% while a multitude of other digital assets fell close to 20%. The crypto market downturn is being blamed on Russia invading Ukraine’s borders as Russian president Vladimir Putin’s troops entered the country before dawn on February 24. There has been much discussion in the cryptocurrency community about this situation. Many crypto supporters have divergent opinions regarding the present geopolitical threat and the future implications for the crypto economy.
Russian Troops invade Ukraine; Crypto-Economy loses 11% overnight, Bitcoin advocates discuss geopolitical risk
According to media reports, Russian troops invaded Ukraine following the Bitcoin.com News report published Wednesday night (EST). While the scope of the attack is uncertain, reports indicate that cruise missiles have been fired and there have been a few explosions adjacent to Kyiv’s international airport.
As our newsdesk’s report noted yesterday, the geopolitical tension has caused stock markets and cryptocurrencies to fall significantly in value. At the time of writing, the entire crypto-economy has lost 11.1%, and just before Thursday’s opening bell, futures indicate that Wall Street stocks are in for a volatile day of trading.
We will see what happens to bitcoin and crypto in times of war. It’s likely that we will discover the answer. It’s history.
— DaBean (@HoneyBadger10) February 24, 2022
In the meantime, many cryptocurrency enthusiasts are discussing the Russia/Ukraine situation in detail. They also discuss theories regarding the future development of crypto markets during the escalated conflict.
For instance, the “reformed hedge-fund manager” and bitcoin proponent James Lavish told his 18,000 Twitter followers: “If you’re selling bitcoin here because of fears of war and civil unrest, you have absolutely no idea what you own and why it is so vitally important for the world at this very moment.”
Samuel Bankman Fried (FTX CEO) also addressed the Ukrainian situation. stressed that war is “really bad for the world.” Bankman-Fried further noted that Eastern European financial systems and currencies were feeling the wrath of the storm.
“It makes sense that stocks are down,” the FTX CEO said. “War is, generally, bad. How should BTC respond? — If the world gets sh***ier, people have less free cash. Basically, selling BTC — along with stocks, etc. — to pay for war.”
The FTX executive said:
This could be destabilizing for Eastern European currency. This is also true for Eastern European financial markets. They might also be considering alternatives. Where would you put your trust if you were to travel to Ukraine?
Numerous crypto advocates continued to stress that even though the cryptocurrency market is in turmoil, it’s important for censorship-resistant coins to be available during such times.
“There’s a war going on outside,” an individual wroteTweet. “Tempted to say ‘crypto doesn’t matter today.’ But that’s BS. The forever wars will continue as long as the world continues to be fueled by traditional money printing machines. Bitcoin adoption [and] blockchain tech will separate the nation-states from banks.”
Stop the war dollars
Purchase #Bitcoin
— Alex McShane (@mcshane_writes) February 24, 2022
“It’s not World War III, it’s the best time to jump into bitcoin,” another individual tweeted. Microstrategy’s CEO Michael Saylor replaced the old “give peace a chance” adage with the word bitcoin and said: “Give bitcoin a chance.”
Peter Schiff and others Expect the Fed To Change Its Tune
Peter Schiff, a goldbug and economist, offered his opinion on the Russian invasion and the Fed.
“Perhaps, the Fed is relieved that Russia invaded Ukraine as now it has an excuse not to raise interest rates in March,” Schiff tweeted. “If it wasn’t this it would’ve been something else, but as far as excuses go this one’s hard to top. Gold spiked 1.5% and bitcoin dumped 5.5% on the news.” Schiff wholeheartedly believesInflation could rise further for Americans if there are sanctions against Russia. Others agree with Schiff that the Fed won’t accept fiscal liability after Russia invades.
On social media, one crypto advocate insisted on:
Not better, inflation gets worse when there is war. Any attempts by the Fed to exercise fiscal responsibility will fail, my prediction. #Bitcoin.
Talk about the Federal Reserve has been tied to the March rate hike. While the Federal Open Market Committee (FOMC) told the press it would raise the benchmark interest rate “soon,” Fed chair Jerome Powell remarked to the press that it would likely happen during the March FOMC meeting.
Fiat means war #BitcoinIs peace possible? pic.twitter.com/wDKGn1XEI9
— Belief_BTC⚡️⚡️⚡️🅱 🧡(🍊,💊)(🌋,🏴☠️) LNP/BP⚡️RGB (@Belief_BTC) February 24, 2022
The U.S. central banking could raise the interest rate and cause more selling on the equity and cryptocurrency market. Schiff, among others, mentioned that the Fed may not raise the interest rate or halt the large-scale tapering of monetary purchases due to the Ukraine crisis.
Let us know your thoughts on the current geopolitical tension between Russia & Ukraine, and its adverse impact on global markets. Please comment below to let us know your thoughts on this topic.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.