Russia invading Ukraine can send the crypto sets values on a downward spiral. Experts say it could also trigger a BTC slump or highlight what investors like about it. Bitcoin donations have been rising to Ukrainian volunteer and hacking groups. Some of the crypto funds have been channeled to buy equipment for government forces.
The Crypto Sector is facing uncertain times
The world economy is already facing uncertain times with a risk of war in Europe, and rising inflation and looming interest rate hikes are driving uncertainty and volatility. These are the views of IG market analyst Kyle Rodda. eToro market analyst Josh Gilbert says markets hate uncertainty, and that’s why many have pulled back in recent days.
Josh added that investors rotate from risky assets when there is a rise in uncertainty. The political tensions between Ukraine and Russia will indeed affect the crypto sector.
News.Com.Au quoted Gilbert saying. “If political tensions intensify between Russia and Ukraine, it’s likely that crypto will come under pressure. As a result, it may also potentially test the lows of 2022 once again. However, we are currently in a position where global economic instability seems to be the ‘new normal’.
Bitcoin looks to dominate
However, the present turmoil has once again highlighted the final goal of BTC of becoming a transparent, open-source, peer-to-peer network not controlled by a single administrator or central bank. In other words, if the banks are closed due to political turmoil, the public will still have access to capital through crypto.
An executive for US investment company Miller Value Partners told CNBC that BTC and other crypto assets are financial insurance against catastrophe as witnessed in Lebanon or Afghanistan where the public could not assess their money due to political turmoil and civil war.