Crypto exchange FTX CEO weighs Bitcoin & US stock: Ukraine crisis

The chief executive officer of FTX exchange shared his stance on the current geopolitical situation’s impact on the money market. 

The whole world knows very well about the ongoing heat and fight between Ukraine & Russia. Due to this geopolitical situation, the stock market of Russia crashed by 30%. And also on the other side, Ukraine’s situation shows that it is moving toward a critical situation because it is not showing its high voltage aggression against Russia, in actuality we can’t consider what will be the outcome in near future.

At the time of writing this article, the Crypto market is facing around a 10% downfall in the total Market Cap, where the market saw a $500-billion crypto market sell-off. On 24 February, the market saw a significant correction in the prices, where Bitcoin is down by 8.56% and Ethereum is down by 11.78%. 

In this recent correction due to the geopolitical high tension situation, which tends to touch a third world war possibilities, the majority of the crypto assets are trading at the three month low and also almost every crypto asset lost the lowest minimum buy support. 

In this situation, many experts claimed that Bitcoin will show a better impact against other crypto assets just like gold but still it is showing a significant correction. 

In the correction of Bitcoin prices, the chief executive officer of Global crypto exchange FTX Sam Bankman-Fried said that it was usual for Bitcoin, not a strange thing. 

4) It makes sense that stocks are down. War is, generally, bad.

What should BTC be doing here?

Well, on the one hand, if the world gets shittier, people have less free cash.

Basically, selling BTC–along with stocks, etc.–to pay for war.

— SBF (@SBF_FTX) February 24, 2022

Through this Twitter thread, Sam said that the current situation created a condition for both the stock and crypto market, where we will see only sell-off. 

The increment in the price of Nasdaq and S&P 500 is also correlated with the Bitcoin correction, which reached a two-year high. 

Bitcoin correlation with traditional markets. Source: Kaiko

FTX CEO noted that volatility in the Currencies in Eastern Europe, will force people to choose a safe option and in that situation, they may choose Bitcoin as an alternative due to the Ukraine invasion.

5) On the other hand, this is likely destabilizing for Eastern European currencies.

And, more generally, for Eastern European financial systems.

Which means they might be looking to alternatives.

If you were in Ukraine right now, where would you trust your money? pic.twitter.com/eRiaPeoiDr

— SBF (@SBF_FTX) February 24, 2022

Read also: Gold is better than Bitcoin during war situations, says US Global Investors Exec