The tension between Russia and Ukraine continues as military operations by Russia, taking it to the next level. Although the crypto markets were severely affected at the beginning of the operations, the markets started to recover after a while. But right now China and Taiwan The question of whether the possibility of an increase in tension between the two countries could affect the crypto markets came to the minds.
Reports of Chinese planes entering Taiwanese airspace have sparked speculation as to whether the country will become the “next Ukraine.” Taiwanese President Tsai Ing-wen has also called on the island to increase security in light of the Ukraine crisis.
What Does This Tension Mean for Crypto Markets?
cryptocurrencies, like the majority of financial markets, is vulnerable to geopolitical tensions, as evidenced by its response to the Ukraine crisis. The volatility caused by the war has wiped $400 billion off the market this month.
Taiwan is also known as one of the biggest players in the global semiconductor market. Any disruption to supply from the country will have far-reaching consequences for the crypto mining industry.
For example, a chip shortage that began in 2020 had greatly increased the prices of graphics cards, a key component in crypto mining.
Many Twitter users think that a lukewarm response from the West to Russia’s invasion of Ukraine may encourage China to make a similar move against Taiwan.
Indeed, the West RussiaIt has avoided blocking the country from the global financial system while imposing sanctions against it. Russia’s large oil exports to Europe are also untouched. Last week, British Prime Minister Boris Johnson warned that the lack of Western support for Ukraine could set a dangerous precedent and pose a potential threat to Taiwan.
China, which sees Taiwan as its territory, recently said that the country is “not Ukraine” and has always been an integral part of China. Taiwan strongly opposed the claim.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.