Russia’s invasion of Ukraine has not affected cryptocurrency markets, says Coinbase

Once investors have more clarity on the Fed’s plans, a more convincing rally is possible, according to the exchange.

cryptocurrency markets say Coinbase
cryptocurrency markets say Coinbase

De-risking in the months leading up to the attack, as well as the quick escalation of the situation in Ukraine, resulted in large sell-offs that drove crypto markets to the bottom sooner than predicted, according to Coinbase.


According to the Coinbase note, this pattern, as well as the assumption that the start of these large-scale disputes tends to be purchasing opportunities — and the notion that it would be a relatively short-lived battle — have contributed to resistance.
According to the research, these events may have persuaded investors that global central banks will be less proactive in raising interest rates.

Crypto markets have seen some short-term respite, but Coinbase explained that this was due to technical factors, adding that “positioning has assisted crypto markets in pulling back, but we believe they remain in a fragile equilibrium.”

According to Coinbase’s medium-term forecast, the larger market needs more time to settle before it begins to create returns, which might occur around the end of Q2.

Before the invasion, investors expected a speedier recovery, but now they are likely to require more information on when inflation will peak and what the Fed’s rate-hike cycle will look like before they are prepared to deploy more capital.

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