- Once again the crypto market is facing a global crisis that is affecting it, the conflict between Russia and Ukraine.
- BTC has lost more than 14% of its value since the beginning of the conflicts between these countries.
- The fact that so many institutional investors have invested in the ecosystem has caused the behavior of BTC to be assimilated to the behavior of traditional stocks and shares.
Although for a long time it was managed that cryptocurrencies, being decentralized assets, would not be affected by global phenomena, the reality is that Various situations worldwide have both favored and affected the crypto market.
An example of this was lived almost two years ago when in March 2021 the Covid pandemic exploded worldwide and the closure of borders caused several markets to fall, including cryptocurrencies, which lost 50% of its value in so just a few hours.
Although after this fall the crypto market rebounded and hit new all-time highs, once again the crypto market is facing a global crisis that is affecting it, the conflict between Russia and Ukraine.
The price of Bitcoin affected by a possible war
Uncertainty is always the worst enemy of investment assets. It doesn’t matter if it’s Bitcoin (BTC) or any other traditional asset, especially if it’s risky.
Why? because Faced with the possibility of a war that triggers an increase in the price of oil and fuel, and more, investors have always opted for the safest assets on the market, such as cash, gold, US treasury bonds among others.
This is because, unless you are in the arms industry, war is not a good thing for humanity and therefore for business.
What has caused the entire crypto market to be painted red, especially BTC that has lost more than 14% of its value since the beginning of the conflicts between these countries.
Situation that has also led several experts in the world of cryptocurrencies to affirm that this was the last straw and get into a Crypto Winter.
On the other hand, others have claimed that although BTC was created to serve as a tool to help humanity avoid the negative effects of this type of conflict, The fact that so many institutional investors have invested in the ecosystem has caused the behavior of BTC to be assimilated to the behavior of traditional stocks and shares.
Conflict Russia – Ukraine
The conflict between Russia and Ukraine dates back far beyond the disintegration of the Soviet Union and its nuances are much more complex than simply talking about the attitude of Putin or Biden.
As is normal in human affairs, nothing is binary, black or white, good or bad. We are talking about different edges, nuances, stories and perspectives that have led to the current aggravation of the situation.
First of all, it is important to recognize that the Ukraine we know today was formed in 1991 with the disintegration of its own parts of the USSR. Many Russian historians even blame the Chernobyl nuclear disaster as one of the main causes of the disintegration of the Soviet Union. Therefore, we can already intuit certain disagreements between their relationship.
However, the history of the Ukrainian republic goes back to the year 882 with the establishment of Kievan Rus by East Slavic tribes in a large territory that today is part of Russia, Belarus, Finland, Poland, Lithuania, Latvia, Estonia, Moldova, Romania and more.
In addition, it is recognized as the cultural origin of what has been throughout history, Russia. However, after hundreds of years of wars, expansions, unions, betrayals, diseases, the Ukrainians lost their territory at the hands of the Russian Empire.
But, it was not until the Bolshevik revolution in Russia and the multiplication of Communism that the Ukrainian nation was able to claim its native land again, a fact that was justly mentioned by the President of Russia, Vladimir Putin, “RRussia was the one that granted the territories to Ukraine”.
Therefore, we can summarize that Ukraine is for Russia, in part:
- The founder of their culture
- Today’s Ukraine as a “gift” from the Russian revolution
- One of the great culprits of the disintegration of the Soviet Union
- And now, a traitorous nation to the cultural foundations of the Kiev of Rus.
3 occupied territories
Much of the current conflict between Russia and Ukraine stems from their relations after the disintegration of Ukraine from Russia. Where 3 territories were in dispute, such as:
The first of them proclaimed itself the Republic of Crimea after a Russian military intervention in 2014 to regain access to the Black Sea from that part of its territory.
The other 2 have been territories controlled by pro-Russian separatists since that same military crisis between Russia and Ukraine. At least it was like that until this week when President Putin declared the recognition of these two zones to later occupy them militarily.
This as a response to Ukraine’s candidacy not only to belong to the European Union, but also to be part of NATO. Which would put the “enemies” of Russia at the door of his house.
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