Mar 4, 2022
PrivacySwap Insider: Could Unforeseen Events Affect Crypto Prices?
PrivacySwap Insider: Could Unforeseen Events Affect Crypto Prices?
The conflict between Russia and Ukraine affected the price of many commodities such as wheat, oil, steel, and even the stock market. As a decentralized ecosystem, can crypto prices be affected by unforeseen events such as wars?
Seven days after Russia started attacking Ukraine, the price of commodities inflated. Stock market prices also felt the impact of the war as the price of the three major US stocks fell by more than 2%. On the other hand, cryptocurrency, which was thought to be decentralized, also tumbled after the news broke.
Cryptocurrency and traditional Finance are now working together
Investors thought that being a “digital gold”, cryptocurrency can separate itself from the traditional investment, while real gold and other tangible assets will plunge if an international crisis arises. However, the crypto market dropped while the gold sustained well.
The whole value of the cryptocurrency market fell about 8% on Thursday, a loss of more than $150 billion in just 24 hours. Solana and Shiba Inu were among the hard-hit currencies, with declines of up to 10%.
FTX CEO Sam Bankman-Fried shared his thought about bitcoin on a Twitter thread. He mentioned that algorithmic trading on cryptocurrency plays a significant role in cryptocurrency drop.
Programs follow predetermined instructions to trade coins in algorithmic crypto trading. Existing data, such as stock market movements, constitute the basis for these algorithms. Because of the Ukraine issue, investors are fleeing the market, and stock markets are falling, causing a drop in cryptocurrency that is on par with the declines in more traditional financial assets.
Crypto mass adoption is happening. This digital asset is slowly moving together with traditional finance. As more banks gradually offer crypto-related services, crypto stats are also tied up with traditional banking.
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The borderless transactions
Despite this, cryptocurrency transactions remain unseizable despite the commotion. A Twitter user, @usleepwalker, shared that cryptocurrency saved their life after fleeing to Kazakhstan.
“My Ukrainian credit card doesn’t work anymore, and all their savings is gone”, he mentioned. “Digital assets and NFTs are their only possession at the moment and are a way to save their lives as going back to Ukrainian can be impossible”, he added.
One major feature of cryptocurrency is its borderless peer-to-peer transaction. Despite the halt operations on banks and other traditional institutions, cryptocurrency remains operational.
No wonder more people are gradually using cryptocurrency nowadays.
Conclusion
Events such as wars are still unavoidable in the 21st generation. Despite that, affected people still find ways to save their lives and finances, and cryptocurrency has become a savior to some. With the encouragement of P2P transactions, cryptocurrency has remained unstoppable and operational during the war.
That is one of PrivacySwap’s goals. As a DeFi platform, we aim to provide a useful platform wherever you are in the world. As we release our PrivacyCard and its card-loading platform, we aim to ensure your fund’s security and its ability to be cashed out in any fiat currency you want. In addition, our DEX will allow you to leverage your assets, providing you with a flexible income despite the international crises.
Join us as we aim to revolutionize the world of finance.
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