Market Wrap: Bitcoin, ETH and Stocks Seesaw Following Ukraine Invasion

Bitcoin started the day down as much as 7.5% after news broke that Russia had invaded Ukraine

article-image

Source: Shutterstock

share

key takeaways

  • Russia’s assault on Ukraine shocked traders, and investors aggressively sold off positions early Thursday
  • Cryptocurrencies, including bitcoin and ether, surged alongside stocks late in the trading day

Russia’s full-scale invasion of Ukraine sent cryptocurrency and stock markets into a tailspin early Thursday. But as the full extent of the military assault became clear, investors jumped back in, driving a powerful recovery.

US President Joe Biden, who had repeatedly warned an invasion was imminent, said Russia would bear the consequences of “an assault on the people of Ukraine without provocation, without justification, without necessity.”

Biden imposed a raft of new sanctions to “limit Russia’s ability to do business in dollars, euros, pounds and yen, to be part of the global economy.” The sanctions were purposely designed “to maximize a long-term impact on Russia and to minimize impact on the United States and our allies,” Biden added.

As traders in the US parsed the news, the S&P 500 plunged, starting the day nearly 2.5% down. Alongside other indices, it recovered later and ended trading up 1.5%. The Nasdaq and Dow likewise first declined before paring losses. The Nasdaq ended the day with a notable 3.44% increase.

[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 started the day down as much as 7.5% but managed to end stock trading hours up by 3.5%. Ether was even more volatile, dropping by as much as 10.5% before closing up 2.22%.

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

Top stories

Story: Bitcoin’s Initial Plunge on Ukraine Invasion Undermines Status as ‘Digital Gold’

  • Increasing institutional investment in bitcoin tightens its correlation with stock movements
  • Lack of understanding of bitcoin’s fundamental properties may be hindering its adoption as a risk management tool

Story: Aligned Raises $34M To Grow DeFi and Web3 Infrastructure

  • The capital will be used to grow its core products for Ethereum-compatible blockchains like layer-2 networks
  • Aligned’s founder is the former chief strategy officer at ConsenSys

Story: Blockchain Infrastructure Provider InfStones Closes $33M Series B

  • InfStones supports nodes on over 50 chains, including Ethereum, Polygon, Solana, Polkadot, Cardano and Chainlink
  • The platform’s customers include Binance, Dune Analytics, Polygon, Circle and Compound

Story: Bitcoin, Risk Assets Falter Even as US GDP Rises

  • Economists warn 2022 will not see the same economic growth as 2021
  • US GDP increased at a 7% annualized rate in the fourth quarter

Going forward

New core and PCE inflation metrics are due out Friday. It's uncertain how the Fed plans to alter interest rates should markets continue falling from the conflict in Eastern Europe.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

🚀 Build What’s Next — Permissionless IV Hackathon Join us June 22–23 in Brooklyn for the Permissionless IV Hackathon — a 36-hour sprint hosted by Cracked Labs and Blockworks where top builders turn ideas into real products. Come to launch, not just […]

recent research

Research Report Templates (10).png

Research

Kamino has evolved into a full-stack asset scaling suite with V2: unlocking new markets, improving capital efficiency, and catering to various risk profiles. We believe it is best positioned to become the credit backbone of Solana as the ecosystem matures. Simply put, KMNO remains our highest-conviction bet in the Solana ecosystem. This report lays out our thesis.

article-image

With an updated Summary of Economic Projections, the Fed sees growth slowing and inflation increasing

article-image

Where do crypto mobile games go from here?

article-image

Bybit’s Byreal, Binance Alpha and Coinbase’s DEX integrations

article-image

This isn’t the worst hack to ever hit Mt. Gox, but it could be the most entertaining

article-image

Crossover’s CEO discusses institutional interest and how over-the-counter (OTC) trading has picked up in crypto

article-image

Sponsored

This collaboration signifies a major leap forward in expanding the reach and utility of Web3 gaming within the vibrant Asian market