Stocks, Crypto and a Possible Russian Invasion | by Mohamad Hakim | Feb, 2022

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As Russia edges towards the Ukrainian border and surrounds the country from many directions, it seems inevitable that a conflict and an eventual invasion will occur.

But as investors, what does this spell out for the stock and crypto markets?

Recently, Russia announced that they would regulate cryptocurrencies and recognize cryptocurrencies as a form of currency instead of an asset like stocks.

This came as great news for the crypto hodl-ers as recognizing cryptocurrencies by a global superpower may lead to international adoption.

However, the escalation occurring at the Ukrainian border may spell disaster for the future of crypto.

As the threat of conflict looms, we would expect investors to reduce risk and exposure to the broader market. Thus, bonds and gold may seem an uptick in interest.

According to Reuters, the forex markets also show signs of reaction to the possible conflict as investors jump into the Swiss currency, viewed as the haven.

There was already a sell-off in the US stock market on Friday as the S&P 500 index fell about 1.9%, while Gold went up 1.55%.

We would expect the cryptocurrency markets to fall further, too. Bitcoin is currently trading below $43,000 with the following support between $35,000 — $40,000, according to CoinDesk.

Cryptocurrencies have always been one of the riskiest assets. So I would not expect any bull run any time soon.

FUD from rising inflation, geopolitical conflicts and supply chain issues continues to pummel stocks and cryptocurrencies.

It is a period of uncertainty, and many people on the web have cautioned against trading.

We may want to consider HODL-ing and not panic sell. Not financial advice.

The upcoming few days may be interesting as we observe how the general markets react to the continued escalation.

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