Russian President Vladimir Putin has “declared war on Ukraine,” authorizing a military operation in the country – ending weeks of diplomatic stalemate and plunging the U.S, Europe, and the world into a nightmare that many believe is the start of a Third World War.
In a speech Thursday morning in Moscow, Putin said Russia would initiate military action in Ukraine. MSNBC News reported that explosions were heard in Kiev, Ukraine’s capital.
“I am deciding for a military operation,” the Russian president said on TV just before midnight. Putin called on the Ukrainian military to “lay down their arms” in the message.
Vladimir Putin has also promised retaliation to anyone who interferes in the operation against Ukraine. Ukrainian Foreign Minister Dmytro Kuleba said Putin started a war, and the world must stop it.
“Putin has just launched a full-scale invasion of Ukraine. Ukraine’s peaceful cities are under attack. This is a war of aggression. Ukraine will defend and win. The world can and must stop Putin. The time to act is now.”
Twitter is filled with videos and images showing Russia’s aggression as Ukraine is trending with 1.2M Tweets.
Breaking: Video shows multiple fires burning in Kharkiv, Ukraine. pic.twitter.com/JYtViDz7gh
— PM Breaking News (@PMBreakingNews) February 24, 2022
CNN reports:
CNN reporting that border forces of Ukraine are saying they have come under attack by Russian and Belarusian forces pic.twitter.com/2etz4jJgoN
— Acyn (@Acyn) February 24, 2022
Bitcoin and other cryptocurrencies, which were already facing a downtrend, started to fall reacting to the situation in Ukraine.
Just minutes after Putin made the televised address, bitcoin, which was trading in the $38,949 range, is down nearly 8%, according to data from CoinMarketCap. The world’s most valuable cryptocurrency has dropped below $35,000 and continues to melt as the crisis in Ukraine intensifies.
Despite bitcoin’s nature of being used as a store of value, analysts say the current slump shows that cryptocurrencies are not a good choice for investors looking for stability in times of market turmoil, in contrast to traditional risk hedges such as gold.
“Bitcoin’s safe-haven narrative has almost completely collapsed as the growing possibility of military conflict and the worsening US-Russia relationship put the broader financial market into the risk-averse mode,” said Yuya Hasegawa, a market analyst for Bitcoin. Bitbank cryptocurrencies in Japan, in a statement.
Bitcoin has gone through several downturns in its history, dropping more than 80% in a single day due to global events. Despite this, the digital currency has bounced back and continued to reach record highs, but this is the first time that Bitcoin has been tested in a war scenario. Experts say that BTC will recover given its rising nature, as on other occasions, but that may not happen anytime soon.
Gold
Gold proves it is a safe haven and a better store of value in the severe market and war conditions where all stock and financial markets are falling. Gold prices rose above the critical $1,900 an ounce level on Wednesday as Russia started its military operations in Ukraine. Spot gold rose 0.5% to $1,908.08 per ounce, its highest level since the end of May 2021. US gold futures held their ground, moving 0.1% higher to trade at $1,909.90 per ounce.
Gold hit its highest level in more than a year after Russia ordered troops into Ukraine.
“Big flight to safety happening in markets right now and the only true safe haven appears to be gold, with crypto markets tumbling” https://t.co/wWrjgnpsfL pic.twitter.com/0MzDU4YhvA
— Bloomberg (@business) February 24, 2022
Biden Administration
President Biden said that he would be meeting with G-7 countries to impose substantial restrictions on Russia.
Tomorrow, I will be meeting with the Leaders of the G7, and the United States and our Allies and partners will be imposing severe sanctions on Russia.
We will continue to provide support and assistance to Ukraine and the Ukrainian people.
— President Biden (@POTUS) February 24, 2022
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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