Russian troops entered eastern Ukraine territories late Monday night, just hours after Vladimir Putin recognized the independence of Donetsk and Luhansk, two Ukrainian regions, that Moscow-backed separatists occupied in 2014.
The world leaders condemned the Kremlin for violating international agreements and accused it of creating a pretext for war.
While NATO and ES allies prepare to announce sanctions against the Kremlin, the markets come with a harsh reaction.
Crypto drops, gold and oil rushes
The increasing geopolitical tension drove both stock and cryptocurrency markets down. The majority of altcoins fell sharply during the past 24 hours, bitcoin climbed below the $37K support level and tested $36.28K price on early Tuesday.
The global crypto market cap decreased by nearly 6% or almost $140 billion over the last 24 hours and currently sits at $1.67 trillion.
In a meantime, gold price hit nine-month highs. Oil and gas prices jumped accordingly 10% and 7% following the upcoming supply disruption fears after Western democracies put economic sanctions on Russia, one of the world’s biggest suppliers of oil and gas.
The price of Brent crude oil reached $99.38 for a barrel, the highs not seen since 2014. However, experts warn it might surge up to $120 a barrel, fuelling global inflation further.
The world reacts
Russian invasion drew backlash around the globe, with world leaders condemning the regime’s aggression and violation of international laws.
President Biden condemned Putin’s “blatant violations of international law” and confirmed the United States continues to closely consult with Allies and partners, including Ukraine, on next steps.
I have signed an Executive Order to deny Russia the chance to profit from its blatant violations of international law. We are continuing to closely consult with Allies and partners, including Ukraine, on next steps. pic.twitter.com/ZS81ivAPgs
— President Biden (@POTUS) February 22, 2022
NATO chief Jens Stoltenberg condemned the recognition of Donetsk and Luhansk, saying NATO supports Ukraine sovereignty & territorial integrity.
I condemn #Russia recognition of Donetsk/Luhansk in #Ukraine. It erodes efforts to resolve the conflict & violates Minsk agreements. #NATO supports Ukraine sovereignty & territorial integrity. We urge Moscow to stop fuelling conflict & choose diplomacy. https://t.co/H4yczPG8XM
— Jens Stoltenberg (@jensstoltenberg) February 21, 2022
The crypto space shared support for Ukraine and worries about the general financial and crypto market reactions.
“People asked for a bear market, and here it came. Good luck everyone and god help the people of Ukraine” commented users on Reddit.
Twitter user Crypto Faucets & Crypto News Tweets urged crypto space to light a candle for the Ukrainians and also do not panic in times of extreme crypto market fear .”Let’s light a wick for Bitcoin and a market as a whole”, he said:
Bitcoin plummets as Poetin orders russian troops to move into the sovereign country of Ukraine. Lets light a candle for the people of Ukraine and lets light a wick for Bitcoin and the market as a whole. https://t.co/aQLHAyi3NM February 22, 2022 at 05:33AM #CryptoCurrency
— Crypto Faucets & Crypto News Tweets (@btcfaucets_2022) February 22, 2022
The legendary matamatician Nassim Nicholas Taleb referred to the old Latin saying “Hannibal at the gates” used to express fear or anxiety. He also noted that in the current geopolitical situation Bitcoin is acting as the complete opposite of a safe haven and hedge against inflation.
Hannibal ad portas.
So it turns out #BTC is not a hedge against inflation, not a hedge ag. oil squeezes, not a hedge ag. stocks. And, of course, Bitcoin is not a hedge against geopolitical events –actually the exact opposite.
A perfect sucker game during low interest rates.
— Nassim Nicholas Taleb (@nntaleb) February 20, 2022
The popular entrepreneur and crypto influencer David Gokhstein started the day with the pray for peace for Ukraine:
Good Morning!
Pray for peace.
— David Gokhshtein (@davidgokhshtein) February 22, 2022
New Zealand-based crypto advocate Lark Davis doubted the further World War III escalations, claiming that nobody wants to enter the nuclear war phase. He also blamed financial marets to over-reacting regarding the current Russian invasion to Ukraine:
World War 3 is not going to happen over break away regions of Ukraine. No one is willing to risk nuclear armageddon over this. Sadly though the markets continue to over react to the news cycle. #bitcoin #crypto
— Lark Davis (@TheCryptoLark) February 21, 2022
Ethereum-founder Vitalik Buterin earlier this month commented that the Russian attack on Ukraine would harm both countries and humanity as a whole. He has not updated his comments on the latest news since:
Нападение на Украину может только навредить России, Украине и человечеству.
Вернется ли ситуация на мирный путь или будет война, сейчас может решить не Зеленский, не нато, а @KremlinRussia
Надеюсь что выберут мудро.
— vitalik.eth (@VitalikButerin) February 11, 2022
At the time of writting, European countries and NATO allies started to impose sanctions, including the halt of certifying the Nord Stream 2 pipeline from Russia and imposing economic sanctions against 5 Russian banks and wealthy individuals.
Bitcoin price remains above $37.4K at the time of publishing. However, given the ongoing fall in the Asian stock market, the gloomiest forecasts for Bitcoin price drop are gaining strength.
As Aaron Chomsky, the head of the investment department at ICB Fund, told RIA Novosti, the world’s leading crypto may potentially drop to the $18K levels, as the risk appetite among global investors declines.
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