Market Wrap: Crypto Pumps After Putin Pledges to Partially Pull Back Troops

Tensions at Ukraine’s border eased slightly after positive remarks from Putin, leading to a jump in both cryptocurrencies and stocks

article-image

Source: Shutterstock

share

key takeaways

  • Russia will partially pull troops from Ukraine’s border, Putin said during a meeting with German Chancellor Olaf Scholz
  • Putin promises to strive to resolve the crisis ”by taking a diplomatic path,” prompting a surge in global markets

Russia to ‘partially pull back troops’ from Ukraine’s border

Equity and crypto prices surged today after Russian President Vladimir Putin said Russia had decided “to partially pull back troops” from Ukraine’s border.

This is the most positive news that has come out of the recent Russia-Ukraine tensions. The announcement helped reverse a sell-off prompted by US Secretary of State Antony Blinken's announcement yesterday that the US was moving its Ukrainian embassy out of Kyiv “due to the dramatic acceleration in the buildup of Russian forces.”

In a press conference with German Chancellor Olaf Scholz, Putin reiterated his concerns over NATO’s expansion to the east, among other things, but offered the prospect of a deescalation.

“We are also ready to continue on the negotiating track, but all these questions, as has been said before, must be viewed comprehensively,” Putin said.

“We intend to and will strive to reach agreement with our partners on the questions that we posed, in order to solve them by taking a diplomatic path,” he added.

Investors welcomed news of the positive meeting between Scholz and Putin. The S&P 500 rose by almost 1.6%, and the Nasdaq and Dow also jumped 2.47% and 1.22%, respectively.

Crypto saw a huge pump with bitcoin climbing almost 3.5% and ether jumping 5.77% by the close of US equity markets. Avalanche, a newer coin that has crept into the top 10 coins by market capitalization, jumped over 12% on the day.

[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"]

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

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

Top stories

Story: Crypto Platform Voyager Keying in on Staking, NFTs in 2022

  • The company is investing in a number of new business lines to reduce reliance on trading volume, CEO Steve Ehrlich said on a Tuesday earnings call
  • Voyager is building an NFT offering that will allow customers to access a variety of marketplaces

Story: Fidelity International Enables Direct Investment in Bitcoin

  • Fidelity International’s bitcoin ETP began trading in Germany on Tuesday and is expected to launch in Switzerland in the coming weeks
  • Since 1980 the firm has operated independently of US-based Fidelity Investments, which still seeks to launch a spot bitcoin ETF

Story: Democratic Rep: Stablecoin Issuers Don’t Have To Be Banks With 100% Reserves

  • US Senators met Tuesday to discuss stablecoin regulation
  • Stablecoin issuers shouldn’t have to be banks as long as their reserves are secure, one representative argues

Story: JPMorgan Enters the Metaverse With Virtual Decentraland Lounge

  • Analysts from the bank predict in-game ad spending will reach $18.4 billion by 2027
  • The average price of virtual land doubled from $6,000 to $12,000 in six months last year, according to JPMorgan

Going forward

Continued deescalation of tension on the Ukrainian border should push markets higher, though looming inflation figures and Fed rate hikes may shake things up. The St. Louis Fed president and the Cleveland Fed president are scheduled to speak on Thursday, which could also spook markets.

Investors should prepare for some level of volatility going forward.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screen Shot 2024-05-16 at 14.53.45.png

Research

Loss-versus-rebalancing (LVR) is arguably Ethereum DeFi’s biggest problem, and thus reducing LVR is fundamental to the success of Ethereum. This report dives into the world of LVR. We uncover its importance for AMM designers, discuss the two major mechanism design categories and various projects developing solutions, and offer a higher level perspective on the importance of AMMs in general.

article-image

Industry players have started realizing high-performance computing-related revenues as they buy Nvidia GPUs and secure customer deals

article-image

Yesterday saw Congress’ upper chamber side with the House on a measure aimed at overturning SAB 121

article-image

Oklahoma’s new crypto bill will go into effect in November of this year

article-image

The deposits hit a $20 million cap in just 45 minutes

article-image

Twelve Democratic Senators voted in favor to pass the resolution Thursday

article-image

Pump.fun is “aware” that bonding curve contracts on Pump.fun were exploited, and has since paused trading