The Crypto Community Discusses Russia’s Ukraine Invasion And The Crypto Market

Several media reports confirm that Russian troops have committed an act of war on Ukrainian soil. This geopolitical tension has negatively impacted the crypto and stock markets.

The Geopolitical Tension And The Crypto Market

As of this writing, the BTC price has declined by more than 10%, while altcoins’ prices have dipped by almost 21% over the past 12 hours. Many crypto traders blamed Russia’s president Vladimir Putin’s invasion of Ukraine as the leading cause of the spiral price decline across the crypto and stock exchange markets.

However, crypto enthusiasts have also gathered to discuss the long-term impact of this situation on the crypto market. Famous BTC advocate, James Lavish, tweeted at his followers, suggesting that they shouldn’t sell their BTC during these war times as it is the period BTC is valuable the most.

The chief executive of FTX crypto exchange, Sam Bankman-Fried, also stressed the importance of BTC holders to keep holding their coins. He added that “this war would greatly destabilize eastern European currencies. Hence, they would seek alternatives. Suppose you are Ukraine now; would you trust your money with banks?”

One person tweeted that BTC adoption and blockchain tech will differentiate banks from nation-states, while another person stated that it is best to invest in BTC now even though it is not World War III. Commenting on the Russian-Ukraine situation, MicroStrategy’s Boss, Micheal Saylor, tweeted the expression, “give bitcoin a chance,” which is a modification of the original phrase “give peace a chance.”

Peter Schiff Also Weighs In On The Matter

Prominent economist and gold bull, Peter Schiff, also shared his opinions on the matter, saying, “the Fed may use Russia’s invasion of Ukraine as an excuse not to increase interest rates next month again.” He further said, “the Fed would have found one or two other excuses not to increase the interest rate by March if this event had not happened. But since it has happened, it gives the Fed a valid excuse not to increase the interest rate. Nonetheless, gold surged by 1.6%, while BTC dipped by 5.6%.”

Schiff also claimed that a US sanction on Russia would cause increased inflation for Americans. Other discussants concurred with Schiff, saying, inflation usually worsens during inflation. Hence, the Fed would likely refuse any fiscal responsibility following Russia’s attack on Ukraine.

Increasing Interest Rate

While Fed chair, Jerome Powell, told the media that an interest rate hike would likely happen next month, the FOMC confirmed an impending interest rate hike but didn’t disclose the exact period it would do so as Powell revealed. Analysts predict that the crypto and stock market would likely turn to a bear market in the event of us’ apex bank increase of interest rate. 

However, like Schiff and other discussants stated, the current Russia-Ukraine crisis may likely be the excuse the Fed would tender for not increasing interest rates or pausing large-scale monetary purchases. The price action of digital assets compared with stock prices further lend credence to the theory that both markets are now behaving similarly.

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