Bitcoin Fundamentals vs. Fundamentals of Geopolitics - Analysts on Ukraine War
It’s the second day of Russia’s invasion of Ukraine, with the former moving undeterred by the sanctions imposed by certain Western countries. Among a great number of possible effects that the war could have or may have already had globally, the effect on the crypto industry is being discussed as well.
On Friday, the majority of the crypto market has recovered over the past 24 hours, since the overall redness observed yesterday – even if still largely red over the week. Bitcoin (BTC) is trading around USD 39,000, while ethereum (ETH) is testing the USD 2,700 level again.
According to the Trading Team at the crypto exchange Bitfinex,
“Markets across the board are dancing to the tune of geopolitical events.”
In a comment for Cryptonews.com, they argued that bitcoin is performing “in lockstep” with other “risk assets” as Russia’s invasion of Ukraine “sends global financial markets into a tailspin.”
Nonetheless, the team emphasizes that there is still “tremendous development and innovation across the digital token economy,” despite the current events in Europe, with long-term sustainable projects laying solid foundations for future growth.
Anto Paroian, Chief Operating Officer at digital asset investment fund ARK36, also argued that, for a couple of weeks already, the main driver of price moves “in the broader risk asset spectrum” has been the prospect of geopolitical escalation – and now that the war did happen, investors rushed "to take risk off the table."
Not everybody agrees with some of the above-shared opinions, however.
Mati Greenspan, the founder and CEO of Quantum Economics, told Cryptonews.com that geopolitical affairs haven't had much of an impact on financial markets, and “certainly not on bitcoin.”
The CEO went on to
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