Market Wrap: S&P Drops to Lowest Point Since June 2021 as BTC Extends Losses

As Ukraine's plight intensifies, equity and crypto markets continued their downturn Wednesday.

John Kirby, a spokesperson for the Pentagon, said Russian forces have continued to amass along the Ukrainian border.

"Russian forces continue to assemble closer to the border and put themselves in an advanced stage of readiness to act and to conduct military action in Ukraine at virtually any time now," Kirby said. "We believe they are ready."

Asked if Russia had continued its advance into the pro-Russia regions in Donbas, Kirby said the Pentagon can't confirm "with any great specificity" the numbers, but "we certainly believe that that's happening."

Latvian Prime Minister Arturs Krisjanis Karins, however, told CNN that Russia is moving more forces and tanks into the territories.

"By any definition, that's a crossing of a sovereign territory into a neighboring country," Karins said.

Investors have continued selling as uncertainty builds, driving the S&P 500 to its lowest point since June 2021. The Nasdaq and Dow have also dropped to lows of nearly eight months.

[stock_market_widget type="accordion" template="chart" color="#5B35D5" assets="^GSPC,^IXIC,^DJI" start_expanded="true" display_currency_symbol="false" api="yf" chart_range="1mo" chart_interval="1d"]

Bitcoin extended losses by the close of stock trading, dropping around 0.7%. Other cryptos managed to stay mostly flat or marginally in the black. Ether rose by half a percentage point, while the layer-1 altcoin LUNA booked a considerable 12% gain.

[stock_market_widget type="accordion" template="chart" color="#5B35D5" assets="BTC-USD,ETH-USD,LUNA1-USD" start_expanded="true" display_currency_symbol="true" api="yf" chart_range="1mo" chart_interval="1d"]

Top stories

Story: Blockchain Association Executive Director Dishes on Crypto Regulatory Roadmap

• The lobbyist is “optimistic” about the crypto executive order expected this week
• The Blockchain Association, which educates lawmakers and regulators on crypto and blockchain technologies, hopes to further grow its lobbying capabilities

Story: Investors Can Now Buy Home Equity Slices Via Fractionalized NFTs

• “Imagine a world where, with a few clicks of your mouse, you can access the entire accumulated value of the equity in your home without incurring debt or selling and moving,” the startup's CEO said
• The fractionalized NFTs are packaged as a security and registered with the SEC

Story: Miami Family Office Backing NFT Fund Launch Helmed by Fine Art Collector

• The fund is one of a growing number of new NFT-focused vehicles as institutional investors crave exposure to the space
• Liquidity is an issue with digital collectible funds, with hedge and private equity setups both in contention for limited-partner lockup periods

Story: Valkyrie Vies To Manage Crypto Companies’ Treasuries

• Valkyrie Investments has launched a treasury management service for crypto companies looking to offload balance sheet responsibilities
• Its first client is the NEM/Symbol protocols, which recently announced their merger

Going forward

As tensions between Russia and Ukraine rise by the hour, the economic road ahead looks rocky. Investors will be on the lookout for Wednesday's initial jobless claims report — plus, core and PCE inflation metrics are due out Friday.

---

Get the news in your inbox. Explore Blockworks newsletters:

• Blockworks Daily: Unpacking crypto and the markets.
• Empire: Crypto news and analysis to start your day.
• Forward Guidance: The intersection of crypto, macro and policy.
• 0xResearch: Alpha directly in your inbox.
• Lightspeed: All things Solana.
• The Drop: Apps, games, memes and more.
• Supply Shock: Bitcoin, bitcoin, bitcoin.