He is the refuge value par excellence, and in recent years some voices have been heard arguing that it could be a deposit with a similar level of security. It was thought that, in this way, bitcoin could diversify portfolios and act as a shield against inflation. However, since its introduction it has been observed that cryptocurrencies are not immune to political crises. Despite the fact that some analysts defend that they can act as a safe haven in the face of instability, events show otherwise. When chaos reigns in the stock markets and the financial world, cryptocurrencies tend to fluctuate in a similar way to other risk securities. The outbreak of the war between Russia and Ukraine has not been an exception and has triggered sharp crashes, turning the cryptocurrency market red.
- Ukraine accepts donations in , and USDT in the midst of war
Since 2020, both bitcoin and the rest of cryptocurrencies are behaving as a risk asset. The International Monetary Fund (IMF) has already warned that currencies such as bitcoin or are already closely interconnected with the stock markets, especially with the S&P 500 stock index. The fact of maintaining an intense correlation with these actions causes a domino effect when one of the parts suffer falls. This is one of the reasons why it is difficult to draw similarities between cryptocurrencies and gold, which historically tends to rise whenever a war breaks out. While between 2017 and 2019 the returns of bitcoin did not seem to follow a similar direction to that of the S&P 500 shares, they seemed to change their behavior and move with the index when the pandemic broke out. This could be verified by the correlation coefficient that shot up to 0.36 in the years 2020 and 2021.
- The European Commission will exclude Russian banks from the SWIFT cross-border network
As has been observed, Vladimir Putin’s offensive has caused dramatic falls in the stock markets, dragging down cryptocurrencies as well. Some tokens have fallen to historical levels, as has been the case with . Bitcoin, for its part, has lost a not inconsiderable 10%, although it has corrected itself and has reached USD 39,000 today, appeasing the panic of investors.
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