Cryptocurrency Prices Soar on the Possibility of Russia-Ukraine Talks

Cryptocurrency prices rose late Friday after Russia agreed to talk to Ukrainian officials about Russia’s invasion of Ukraine.

Ukraine’s presidential adviser Mykhailo Podolyak, speaking to Reuters on Friday, said Ukraine wants peace and is willing to engage in talks with Russia over its neutral stance toward NATO.

Russian Foreign Minister Sergei Lavrov said on Friday that Russia would be open to talks with Ukraine, but only if Ukrainian forces had laid down their weapons.

“Neo-Nazis” should not be in charge of Ukraine, Lavrov said.

After Russian President Vladimir Putin unleashed a large-scale airstrike and ground attack, Russian missiles and artillery rained down on Ukrainian cities early Thursday.

While this was going on, investors around the world tried to understand the geopolitical shifts. While the Russian ruble was at its worst level on record, the S&P 500 stock index rose more than 2%.

Total Crypto Market Cap at $1,738 Trillion in Daily Chart | Source: TradingView.com

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Cryptocurrency Prices Up

Bitcoin followed other alternative cryptocurrencies (altcoins) in the crypto markets on Friday, suggesting that investors have a higher risk tolerance and expect cryptocurrency prices to take a beating.

Ripple’s XRP and Terra’s LUNA token are both up 10% in value in the past 24 hours, while Bitcoin has remained relatively unchanged.

Some cryptocurrency investors believe that the price recovery will continue due to the recent volatility.

The expected volatility of Bitcoin’s price for the coming week increased by 75% year-on-year. CoinDesk’s Omkar Godbole said the cryptocurrency’s reverse volatility structure generally precedes price bottoms.

Volatility implied by investors refers to the expectation of price movements over a certain time frame that they have established.

Members of the United Nations Security Council are expected to vote this week on a resolution critical of Russian military action in Ukraine.

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Ukrainian President Volodymyr Zelenskyy has claimed that the sanctions imposed on Russia are not sufficient to stop Russian military actions in Ukraine.

He went on to say that they are only protecting their nation.

For the 44 million people living in Ukraine, Putin’s claim that their democratic country is an illegal state carved out of Russia is an attempt to erase their country’s more than thousand-year history.

The West has taken a slew of measures against Russia, including blacklisting Russian banks and banning technology exports. Rather than kick it out of the SWIFT system, they chose to leave it in.

The rating agencies S&P and Moody’s downgraded Russia to “junk” status, and S&P and Fitch quickly downgraded Ukraine to default after the invasion.

According to data collected by CryptoQuant, Bitcoin’s buy volume to sell volume ratio has been slightly higher in the past 24 hours, demonstrating positive sentiment among traders.

Featured image from Review Geek, chart from TradingView.com

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