TL;DR Breakdown
- Gold prices have spiked due to the Ukraine invasion.
- Stock markets continue to plummet.
- Bitcion and crypto markets resist, prices are up by almost 10% in 24 hours.
- Ukrainian crypto exchanges experience a 200% increase in trading volume.
Since last week, the world has been on the edge as tensions between Russia and Ukraine reached new heights. On Wednesday, Russian President Vladimir Putin officially announced an invitation to Ukrainian territories, leading to massive geopolitical conflicts. The consequence of the Ukraine invasion was seen loudly throughout the financial markets.
It’s not a surprise that when geopolitical tensions increase, financial markets become unstable. The stock market suffered the first plummet as oil prices soared overnight. Since the invasion, the S&P 500 stock index is down by 13%. Initially, the crypto market suffered the same fate due to wide-scale sell-off as Bitcoin traded below $35k for the first time in almost a year. However, Bitcoin and the overall crypto has since made a sharp comeback, a BTC is back up to $39k and the global crypto market is up by 9% in the last 24 hours.
Bitcoin’s physical nemesis Gold has also surged in price due to the conflict. Gold has been the most reliable inflation hedge for investors in history. Since the rise of crypto, investors have often regarded Bitcoin as a better inflation hedge than gold. Russia’s invasion of Ukraine immediately led to a spike in gold prices.
The SPDR Gold Shares ETF increased by 0.68%, reaching $179.50. This is the highest price of gold since Q4 2020. The prices are already up by more than 6% in the 2 months of 2022. This is largely due to investors selling off their stocks to invest in gold because of inflation fear.
How is Bitcoin holding on amidst the Ukraine invasion crisis?
Although the entire financial market is suffering from geopolitical conflict, the crypto market is holding on. The crypto industry has stepped in to take significant measures to protect the interest of the Ukrainian population and economy. Ukrainian crypto exchanges have experienced a 200% increase in trading volume, as people are rushing to buy crypto in the fear of economic collapse.
The Ukrainian military has also received crowdfunded donations in cryptocurrencies, which are worth up to $4 million. People are seeing crypto as a viable method of payment and investment in times of economic and geopolitical crises. Bitcoin prices are currently trading over $39k, with a 10% increase in the last 24 hours.
