Market Wrap: Crypto, Stocks Continue Slide as Investors Eye Russia-Ukraine Tensions
The unfolding situation in Eastern Europe has ratcheted up market uncertainty, leading investors to sell or stick to the sidelines
- Belarus will join Russia in military drills along Ukraine’s border
- Putin said the drills were “purely defensive in nature,” though investors seem to be selling or sticking to the sidelines
Stocks extend losses as investors weigh likelihood of Russia invading Ukraine
Equity and crypto markers prolonged their downturn Friday as the prospects of a war between Russia and Ukraine ramped up.
Russia President Vladimir Putin and Belarus leader Alexander Lukashenko unveiled a plan for joint military drills along Ukraine's border — the latest sign of aggression in the eyes of the US.
All indices and major cryptos fell on the news, with the S&P 500 dropping by 0.72% and the Nasdaq declining 1.14%.
Putin maintains the drills are not a threat, calling them "purely defense in nature." The exercises are already underway, and the Russian leader said "one of the serious events in this complex of military cooperation" is slated for Saturday.
"These exercises are purely defensive in nature and do not threaten anyone."
The Dow and Russell 2000 took hits as well, dropping by 0.68% and 0.92%, respectively. Bitcoin and ether extended major Thursday losses as bitcoin dipped another 1.11% and ether lost 3.21% by the close of stock markets.
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Story: Funding Roundup: Capital and Funds Continue To Launch Into Crypto
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Story: Ukraine Passes Law Legalizing Crypto as Threat of War Looms
- Ukraine has passed an amended crypto law that formally recognizes the nascent asset
- A legal market will be established and will have a formal regulator in place to monitor and control crypto
Investors should prepare for major volatility in the near future as the current conflict between Russia, Ukraine and NATO unfolds. Market spikes will likely be compounded by the Federal Reserve's next steps on interest rate hikes.
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