Russia’s invasion of Ukraine continues, and so do the discussions on how the worsening geopolitical, economic, and social factors may affect pretty much all segments of the wider society. Two crypto exchanges shared their views with Cryptonews.com on what may await the crypto market, and what segments are the most threatened.
Although the recent escalation has tanked most risk-on assets, crypto included, the situation between Russia and Ukraine has been developing and escalating for a while.
“The ongoing decline in crypto prices suggests much of its potential fallout has already been priced into the market,” said Rick Delaney, Senior Analyst at OKX Insights, crypto exchange OKEx’s crypto market analysis team.
However, he noted that a sudden recovery is “unlikely” as investors wait to see how the US central bank, the Federal Reserve, will adjust interest rates in light of recent geopolitical developments. Even longer term, we could expect to see “little changes fundamentally about crypto as an asset class,” he added.
Meanwhile, the aggressor may be using bitcoin (BTC) in light of the sanctions imposed upon it, while Ukraine is asking for donations in BTC, ethereum (ETH), and tether (USDT).
Brandon Dalmann, Chief Marketing Officer at the Unizen exchange, told Cryptonews.com that we saw crypto markets reacting positively “with the Russian military operation because the Russian government will leverage BTC to de-risk their financial system from the impact of the sanctions.”
Dalmann too said that the eyes seem to be on the Fed now, stating that in the medium term, the market will price in the Fed rate hike accordingly. “The industry is facing an industry-wide litmus test, where weak projects will be sidelined in favor of startups
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