Market Wrap: Ukraine-Russia Talks Fail, Inflation Hits 40-Year High

Talks between Russia and Ukraine ended in a stalemate, leaving investors with little hope for a diplomatic end to the conflict

article-image

Blockworks exclusive art by Axel Rangel

share

key takeaways

  • Talks between Ukraine and Russia to establish a ceasefire and humanitarian corridors on Thursday made no progress
  • The US core CPI rose 0.8% in February, bringing inflation up 7.8% year-over-year, the highest its been since 1982

Ukraine and Russia’s foreign ministers discussed implementing a ceasefire and establishing humanitarian corridors for refugees in a Thursday meeting hosted by Turkey’s foreign minister.

Ukraine’s foreign minister, Dmytro Kuleba, called for a 24-hour ceasefire and an open pathway out of Mariupol for civilians. Russia’s Sergei Lavrov did not agree, citing proposals already offered by Russia that called for a demilitarized Ukraine.

“I made a simple proposal to Minister Lavrov: I can call my Ukrainian ministers, authorities, president now and give you 100% assurances on security guarantees for humanitarian corridors,” Kuleba said. “I asked him, ‘Can you do the same?’ and he did not respond.”

The lack of consensus between the two nations added to concerns that a diplomatic ending to the conflict may not be realistic.

Adding to market uncertainty was February’s consumer price index report, which showed inflation is still rising.

The consumer price index increased 0.8% in February, bringing year-over-year inflation up to 7.9%, the highest increase since January of 1982.

US stocks opened sharply lower and, despite climbing throughout the day, ended down. The S&P 500 fell 0.43% and the Nasdaq and Dow stumbled 1.10% and 0.34% respectively.

[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"]

Crypto markets, which had jumped yesterday, lost most of their gains today as investors sold off. Bitcoin was down by as much as 8% by midday but ended stock trading down just under 5.7%. Ether took a hit as well, falling by 3.91% by the end of stock trading.

Stacks, a layer-1 blockchain aiming to bring decentralized applications (dApps) to bitcoin, was crypto’s biggest gainer of the day among the top 100 coins by market capitalization, with a 21.7% gain.

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

Top stories

Story: Will Biden’s Executive Order Speed Up Spot Bitcoin ETF Approval?

  • Interagency research may alleviate SEC crypto concerns around fraud and manipulation, WisdomTree’s chief legal officer said
  • The executive order does not affect the SEC’s stance in the short term, according to Global X’s director of research

Story: Hack VC Hikes Fundraising Stakes, Targets $500M for New Crypto Venture Fund

  • The firm has been courting institutional players, including pension funds and endowments, as limited partners
  • Hack VC is looking to hire as the firm scales its assets under management

Story: Ethereum Scaling Startup Reportedly Triples Valuation in 4 Months

  • “Since StarkNet was launched, interest from devs and investors has gone through the roof,” an anonymous company source told Blockworks
  • In an interview with Blockworks in November 2021, one of the four co-founders said that they “didn’t need the money” from its Series C, but the funds helped them grow their operations even faster

Story: Small Crypto Miners Are Fixating on Dwindling Towns and Dilapidated Buildings

  • Plan C Crypto, a California crypto mining firm, recently picked Fayetteville, North Carolina for its East Coast headquarters
  • “In the mining world, the turnaround that happens in communities when a large mining farm is deployed there can change lives,” Mason Jappa, CEO of Blockware Solutions, told Blockworks

Going forward

Bitcoin had a significant drop Thursday but remained above its previous low. The cryptocurrency has now seen a series of higher lows, suggesting it is consolidating and preparing for a larger volatile move up or down. Investors should prepare for next Wednesday’s Fed meeting at which a change to the federal funds rate is likely. While a 25 basis point increase is expected, continuing growth inflation could prompt a steeper increase.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

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

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Do Kwon may miss the start of the March 25 trial in the SEC’s case against the former executive and Terraform Labs

article-image

Riot Platforms bought 31,500 more mining machines while CleanSpark has begun operating in Mississippi

article-image

Dencun was activated on all testnets, a blog post Tuesday said

article-image

Hut 8 also announced it broke ground on a Texas mining site

article-image

Uniswap aims to become a “complete platform for swapping” following its latest product releases

article-image

Continued demand for bitcoin ETFs coupled with greater demand for bitcoin from exchanges is contributing to price moves, analysts say