Dear crypto investor, welcome to war! A situation where the leaders reap profits and civilians lose finances, unfortunately for some their precious lives and loved ones. A single bullet shot between two nations can bring down the market throwing your 2000-hours of research to the wind. Conflicts have always controlled the stock market and now the bloodbath has trickled down on the crypto market too. It’s an uncomfortable situation where you feel helpless but there’s nothing you can do about it.
The Russia-Ukraine conflict was a toxic cocktail that was brewing for months and the world got to sip it today. Each sip of the cocktail highlights the fact people’s investments are going down the drain. The rich are selling their holdings with profits, while the common man is left with nothing but charts of ‘red’.
The global sell-offs ‘fearing the war’ triggered a domino effect of panic-selling, where investors pulled out their holdings in fear of a further slump. Those buying the dips are realizing that they should have waited for further dips.
The crypto market saw a temporary recovery yesterday but again plummeted after Russia sent troops to eastern Ukraine and opened fire.
The US and the EU continue to threaten Russia’s President Vladimir Putin. The Biden administration is working towards placing sanctions on Russia to cripple their economy. However, the sanctions and warnings seem to be little or not effective against Russia. If a full-blown war breaks out this month, the current levels could end up being the ‘months highs’.
Conflicts and the Crypto Market
The year started off on the backfoot as stock markets around the world dipped due to tensions between Russia-Ukraine. The crypto markets went in tandem with the conflict and dwindled since the start of the year. Majority of the coins are trading below -50% from their all-time highs wiping away profits made in 2021.
So the next time you’re making a 5-year/10-year investment plan, never forget to consider the ‘elephant in the room’. The elephant, can wreak havoc and make all your ‘research and charts’ seem meaningless in a blink of an eye. The elephant could be none other than your own respective leader declaring war and wiping away your dreams and finances.