Few days ago, I think a week or two ago, a video of Putin speech was circulating around about a potential war against the people of Ukraine. For a second, I thought this would be one of those news where they threaten war and it doesn’t happen so we don’t have anything to be worried about. I guess I was wrong, it’s becoming a reality and we are seeing it happen right in our very own eyes.
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For weeks now, it’s been the Canadian government against the truckers and this also include halting crypto donations. So it’s been one hell of a roller coaster journey for crypto this month. I never knew how the Russian attack to Ukraine will affect crypto till I read one of 
War is obviously not good, it doesn’t end well, if it doesn’t affect you physically, it will affect you economically, because one way or the other, our economy is connected. During the time of war, no one thinks about their portfolio or what they own, their first instinct is to survive. Their first instinct is to gather as much resources as possible that can sustain them till it ends. This means that a lot of people will be selling their assets, both physical assets and digital assets.
Check around you, the whole digital market has been going bearish, people are pulling out because they need their money to survive. This is the time you will see the price of basic things spike, because as usual, humans are used to taking advantages of situations and making profits from them. So expect basic needs like food, shelter, water and transportation to get really expensive. This means that people will start paying more for less.
The other part of this is that, some of the people that are in support of war, or rather should we call them sponsors of the war, may have investments in crypto. This means that they will be pulling their assets to pay for this war. Another reason the crypto market will be going down in price, right now, they are more focused on war than asset profits.
Now let’s look at the big bag investors who are not in Ukraine neither are they supporting the war. They are just business people who make money from everything going on. Can we call them the fundamental investors? Currently they are probably observing the fundamentals surrounding the situation of the world but in this case, UKRAINE, and how it’s going to affect the market. If they see it will affect the market negatively, it’s right they short the market and make profit from this war. This will also drive the value of the crypto market down.
We have seen that the market has lost more than $200 Billion in market capitalization value. From a $1.7 Trillion market capitalization, to a $1.5 Trillion market capitalization.
But these are just speculation, just as we are thinking this might be bad for bitcoin, because of Fear, Uncertainty and Doubt, it could also go well for bitcoin and other cryptocurrencies. Remember that bitcoin can be used as a store of value, it’s also possible that people can be moving their money and wealth to something they trust. They might choose crypto, but currently, the chances of this being an option right now is far slimmer than other options.
We pray for the people of Ukraine and hope for the war to end soon.