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Crypto is falling in value, but it is also benefiting Ukrainians
It has also been stated that throughout the crisis, Ukrainian NGOs received donations in the form of cryptoassets. One donor in particular gave more than $3 million in bitcoin, as Ukrainians turn to crowdsourcing to fund their defence rather than relying on banks or regular financial outlets.
We turn to eToro's Simon Peters, as we do every week, for his opinion on the week in crypto and blockchain.
As the situation between Ukraine and Russia escalated, crypto prices continued to fall last week, mirroring the tendencies of global financial markets in general.
Prices are continuing to fall.
Bitcoin is currently selling about $38,000, after plummeting below $35,000 last week. Meanwhile, ether is trading around $2,600 after falling below $2,300 in turbulent conditions last week.
This is consistent with the recent trend of cryptoassets acting like 'risk-on assets.' Based on the performance of the S&P 500, BTC in particular has been tracking US stocks to an unprecedented degree, implying that the downward slope in prices witnessed in recent weeks is to be expected.
It's hardly unexpected that many investors are attempting to de-risk in the current environment, and values have reflected this. If the current tensions subside rapidly, we may witness a revival of enthusiasm for risk.
However, we are still dealing with rising inflation, interest rate hikes, and quantitative tightening discussion, which suggests that the market may require more certainty before prices begin to rise again.
Ukrainians are turning to cryptoassets.
People appear to be turning to cryptoassets in response to the Ukrainian government's ban on digital money transfers. Domestic customers were gravitating to Tether's USDT stablecoin, which is tethered to the US dollar, according to local data. Tether, the most popular stablecoin, has been reasonably stable in recent weeks, in contrast to more high-profile cryptoassets like bitcoin or ethereum.
Ukraine has long been a promoter of digital assets, and in 2021, Ukrainian President Volodymyr Zelenskyy signed legislation allowing the country's central bank to establish its own digital currency. In fact, the government was said to be modernising its payments sector so that its central bank could issue digital currencies.
The demand for Tether and other tokens on the front lines in recent days has served as a sobering reminder of crypto's importance, not just as an alternative when trust in fiat currencies and access to them is severely constrained, but also as a vehicle for social change.
Crypto crowdfunding is beneficial.
It has also been stated that throughout the crisis, Ukrainian NGOs received donations in the form of cryptoassets. One donor in particular gave more than $3 million in bitcoin, as Ukrainians turn to crowdsourcing to fund their defence rather than relying on banks or regular financial outlets.
According to Elliptic, over 4,000 donations have been made so far as volunteer groups and non-governmental organisations publicise their crypto wallets online.
If nothing else, these occurrences show that crypto as an asset class isn't just reacting to events as they happen, but is also closely related to demand on the ground, which may result in more market sensitivity.
BNY Mellon (BK) is looking to increase institutional exposure.
According to reports, BNY Mellon is working on a digital asset custody infrastructure that will allow institutional customers to get crypto exposure. BNY would initially allow users to keep the most popular assets in the bank's crypto wallets; upon regulatory approval, the service would expand and include additional digital assets.
While it may not be available for a few months, BNY appears to be attempting to keep ahead of its institutional peers with this latest initiative. This is probably unsurprising given that it was one of the first banks to offer crypto exposure to its clients and obviously sees this as a high-demand offering.
This product is likely to start first in the United States, but once it goes live, we might see more institutional finance stream into the market, potentially galvanising the market in the months ahead.
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By Crypto PiratesIt has also been stated that throughout the crisis, Ukrainian NGOs received donations in the form of cryptoassets. One donor in particular gave more than $3 million in bitcoin, as Ukrainians turn to crowdsourcing to fund their defence rather than relying on banks or regular financial outlets.
We turn to eToro's Simon Peters, as we do every week, for his opinion on the week in crypto and blockchain.
As the situation between Ukraine and Russia escalated, crypto prices continued to fall last week, mirroring the tendencies of global financial markets in general.
Prices are continuing to fall.
Bitcoin is currently selling about $38,000, after plummeting below $35,000 last week. Meanwhile, ether is trading around $2,600 after falling below $2,300 in turbulent conditions last week.
This is consistent with the recent trend of cryptoassets acting like 'risk-on assets.' Based on the performance of the S&P 500, BTC in particular has been tracking US stocks to an unprecedented degree, implying that the downward slope in prices witnessed in recent weeks is to be expected.
It's hardly unexpected that many investors are attempting to de-risk in the current environment, and values have reflected this. If the current tensions subside rapidly, we may witness a revival of enthusiasm for risk.
However, we are still dealing with rising inflation, interest rate hikes, and quantitative tightening discussion, which suggests that the market may require more certainty before prices begin to rise again.
Ukrainians are turning to cryptoassets.
People appear to be turning to cryptoassets in response to the Ukrainian government's ban on digital money transfers. Domestic customers were gravitating to Tether's USDT stablecoin, which is tethered to the US dollar, according to local data. Tether, the most popular stablecoin, has been reasonably stable in recent weeks, in contrast to more high-profile cryptoassets like bitcoin or ethereum.
Ukraine has long been a promoter of digital assets, and in 2021, Ukrainian President Volodymyr Zelenskyy signed legislation allowing the country's central bank to establish its own digital currency. In fact, the government was said to be modernising its payments sector so that its central bank could issue digital currencies.
The demand for Tether and other tokens on the front lines in recent days has served as a sobering reminder of crypto's importance, not just as an alternative when trust in fiat currencies and access to them is severely constrained, but also as a vehicle for social change.
Crypto crowdfunding is beneficial.
It has also been stated that throughout the crisis, Ukrainian NGOs received donations in the form of cryptoassets. One donor in particular gave more than $3 million in bitcoin, as Ukrainians turn to crowdsourcing to fund their defence rather than relying on banks or regular financial outlets.
According to Elliptic, over 4,000 donations have been made so far as volunteer groups and non-governmental organisations publicise their crypto wallets online.
If nothing else, these occurrences show that crypto as an asset class isn't just reacting to events as they happen, but is also closely related to demand on the ground, which may result in more market sensitivity.
BNY Mellon (BK) is looking to increase institutional exposure.
According to reports, BNY Mellon is working on a digital asset custody infrastructure that will allow institutional customers to get crypto exposure. BNY would initially allow users to keep the most popular assets in the bank's crypto wallets; upon regulatory approval, the service would expand and include additional digital assets.
While it may not be available for a few months, BNY appears to be attempting to keep ahead of its institutional peers with this latest initiative. This is probably unsurprising given that it was one of the first banks to offer crypto exposure to its clients and obviously sees this as a high-demand offering.
This product is likely to start first in the United States, but once it goes live, we might see more institutional finance stream into the market, potentially galvanising the market in the months ahead.
Support us!