The Cryptocurrency Effects Of The Russia-Ukraine Conflict
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As a result of Russia’s invasion of Ukraine, everything has come to a halt. The stock market is down. The value of cryptocurrency has dropped. For the first time in a long time, both nfts and Ethereum are down. In most cases, the relationship is inverse. When one falls, the other rises. But that is not the case right now.

 

What is causing this? And the reason for this is that the globe is currently in a state of great uncertainty.

 

Nobody knows how much the crisis in Russia and Ukraine will worsen. Anyone who assures you that everything will be fine. They either know what will happen or the markets have reached their bottom. They are deceiving you. No one knows what will happen at the moment. And what’s happening right now is a disaster. It’s a terrible situation.

 

People are dying, and they are dying at the same time. The cost of a digital asset is less relevant than the cost of a cartoon monkey. What matters in times like these are items that maintain life, such as food and water, as well as weaponry. We’re also seeing an increase in the price of gold.

 

Historically, gold has performed exceptionally well during wartime. So, how about bitcoin? In this case, how will bitcoin behave? And the answer is that we have no idea. That is a component of the current situation. There’s a lot of dread and a lot of uncertainty. Will bitcoin function as a speculative asset or as a form of digital gold? We’ll have to wait and see how things turn out.

 

How will bitcoin, on the other hand, fare? if we do end up in a full-fledged war. The problem is that we don’t have anything historical to compare it against. However, we may have a peek at the stock market. What has been the stock market’s performance throughout previous wars? Moreover, during World War I, the stock market was closed for six months. The market plunged 30% in 1914 due to a lack of liquidity.

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The Dow, on the other hand, increased by 88 percent the following year. And it was up 43 percent from the start of the conflict, or 8.7% on an annualised basis. And then there’s World War 2. From the outbreak of World War II in 1939 to the end of the conflict in late 1945. The Dow gained 50 percent in total, or more than 7% each year.

 

As a result, the stock market in the United States increased by 115 percent amid two of the worst conflicts in contemporary history. When we examine the stock market, we can see that it was up generally even during two of the worst wars in contemporary history.

 

As a result, the only thing we can relate bitcoin to is the pandemic. And, during the start of the pandemic, bitcoin was severely harmed. It dropped as low as 3500 points.

 

After that, the uncertainty vanished. And we were well aware of the situation. Bitcoin has climbed to a high of $69, 000. And this is typical of what happens during significant events, such as war.

 

There is a lot of ambiguity in the beginning. And no one knows what will happen next. Markets are crashing. Then, as we get more responses, things usually pick up again. But, once again, we have no idea what will happen at this time. When you least expect it, accidents happen out of nowhere.

 

We had no idea that this would happen. But, whether it’s a war, a pandemic, or something else, all markets will crash. But, in particular, in cryptography. This isn’t the only one; there will be a slew of more in the future. And in that post, we spoke about how to prepare for more than just a crash. But it’s also about putting together a portfolio that can endure a downturn. Check out the latest cryptocurrency news for additional information.

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Dean Johnston