We can say that a kind of crisis has been experienced with Russia’s military activities on the Ukrainian border and the USA’s making a unit of 8,500 people ready for a possible war scenario in Eastern Europe. Well this is the case bitcoin and cryptocurrency How does it affect the market?
Tensions between Russia and Ukraine have peaked in recent days, with the possibility of Ukraine becoming a member of NATO.
However, according to analysts, the crisis situation between Ukraine and Russia may not affect the cryptocurrency world as much as feared, even if it gets worse than it is now. According to experts, macroeconomic factors are mostly among the factors putting pressure on the market.
The Impact of the Ukraine Crisis on Bitcoin and Cryptocurrency World Appears to be Limited
We know that the crisis between the two countries has so far had some effects on the financial world, including the cryptocurrency market. Despite this, according to most experts, the reason for the decline in recent weeks is factors other than tensions between Russia and Ukraine.
Mark Eonowitz, head of Swiss fintech company Horizon, shared his thoughts on the subject as follows: “We cannot deny that the Ukrainian crisis has had an impact on the stock markets. However, the impact of multiple factors is currently being felt in the global economy. These include some events such as COVID-19, inflation concerns and the Fed signaling that it will raise interest rates.”
Elonowitz stated that the Ukraine crisis has caused some degree of concern among investors, but the main reason for the current decline is due to more bottoming and systemic trends. Bannockburn Global Forex manager Marc Chandler also said in his statements that he thinks the economic impact of the conflict in Russia and Ukraine will “remain limited”, except for their own currencies.
According to many experts, the cryptocurrency market is currently worried about other problems it has.
How Will The Cryptocurrency Market Be Affected If War Breaks Out?
Although many analysts think that the impact of the Ukraine crisis for Bitcoin and cryptocurrencies will be limited, the same analysts believe that in case of any direct armed conflict between the two countries, its sphere of influence will expand. Mark Elonowitz evaluated how a possible war would affect the crypto money market: “In case of armed conflict, there may be a serious decline in the crypto money market. However, this decline will be due to the impact of the war on the oil and food markets, rather than a direct effect.