Russia Ukraine war and cryptocurrency

The ever-volatile bitcoin in demand in world and beyond. It has been affected by the Russia Ukraine war and cryptocurrency have fared during the largest attack on a European country since World War II.

“The conflict in Ukraine continues to escalate, putting the world on edge,” Lindsey Bell, Chief Markets and Money Strategist at Ally, said in a note. Markets have been plagued by uncertainty, thus creating a challenging investing scenario’s.

War and cryptocurrency Correlation

When Russia launched it’s assault on Ukraine cryptocurrency initially fell down. Because investors dumped riskier assets, falling as much as 8% on Thursday before clawing back losses on the day. S&P 500 added 1.5% while European stocks fell 3.3%.

The Russia Ukraine war and it’s relation with cryptocurrency ahs been tough, and it still keeps on tugging on each other.

Although bitcoin did jumped back up to 14.5% on Monday. This was it’s best day in year. and now is at 12% since the day of attack in February. Smaller gains in U.S stocks while MSCI’s world index is down bit slightly.

Cryptocurrency Still safe?

Bitcoin, the argument goes, has a limited supply and runs on a global computer network. Which is beyond the reach of governments and is therefore safer than traditional currencies. Many also call bitcoins as digital gold. A handy place to store cash during war or disaster.

Things are never certain in bitcoin world, it often behaves more like risk-on assets and sometimes a safe heaven. “Bitcoin is not just a speculative asset, it is also a seizure-resistant, policy-independent. And a longer-term store of value,” said Noelle Acheson, head of Market Insights at New York-based Genesis.

“If the Russia-Ukraine war situation continues to escalate and risk markets badly suffer it will struggle to rally further, but in our view still outperform.”