The Russian army officially entered Ukraine last night, while the global markets turned red, gold and oil broke the records of recent times. So, why did this political crisis between the two countries turn all markets from crypto to gold upside down?
The long-standing tension between Russia and Ukraine has reached its peak in recent weeks with the increase in military activity. Where the West and Russia make confrontational statements, Russia that you will invade Ukraine Although Russia described these statements as a ‘provocation’ on the days when it was almost certainly reported, an expected development took place last night, which was not welcomed by anyone.
Russia, with the order of President Putin, decided to recognize the so-called republics in the Donetsk and Luhansk regions of Ukraine, and the Russian forces, Entered into Ukraine. This development also caused the global markets, which had been affected by the statements for a long time, to crash. including Turkey on all exchanges red arrows while the value of oil and gold broke all-time records.
Latest situation in the markets:
BIST 100 was lowered below 2000 points:
It measures the performance of the top 100 stocks traded in Borsa Istanbul in terms of market and trading volume. BIST 100 index experienced a sudden crash with the news last night. The score, which was circulating at 2.035 levels the day before the news, was pulled up to 1.982 this morning.
The situation was the same on NASDAQ, the world’s largest technology exchange:
Many technology giants such as Apple, Microsoft and Alphabet are listed. NASDAQ It also fell on the news of Russia’s entry into Ukraine. Shares of Apple, Google, Tesla, Amazon, NVIDIA, Microsoft and many more lost an average of 2% in value.
European markets hit their lowest level in the last 7 months:
European markets were also affected by the news of the war. Stock index of European stocks STOXX 600 While it saw a 1.7% decrease, the decrease experienced since the beginning of 2022 approached 10%. The German DAX fell 2.2% and the FTSE 100 fell 1.2%.
The cryptocurrency market is also in a deep decline:
The leader of the crypto money market, which lost value instantly with the statements from the West – Russia fronts. bitcoin, The decline, which he continued until the news of the war, accelerated with the arrival of the news. Bitcoin fell to the level of $ 36,350. The cryptocurrency, which started 2022 with a decline, had seen the lowest level of $ 32,917 this year.
Oil and gold broke recent records:
Gold, which was constantly on the rise during the war declarations, took off in global markets with the news of Russia’s entry into Ukraine. for $1,913 It rose to the highest level since June. Again, the value of oil fed by war highest level in 7 years. reached. Brent oil climbed above $96.
Let’s get to the main topic: Why are crypto, commodity or other exchanges upset due to the Russia-Ukraine crisis?
Although economists can make long explanations on this subject, it is actually possible to explain the reasons without talking at length. Many investors, especially those referred to as ‘whale’, spend their wealth in relatively risky like crypto or company stocks in order to protect their money in case of uncertainty in the environment in times of war or other crisis. by withdrawing from investments such as gold, oil safer investment vehicles prefer to transfer. As a result, while the downward trend prevails in the stock markets where the money exits; There is an increase in the stock markets that investors attack.