Market Wrap: Bitcoin and ETH Drop as White House Warns Americans To Leave Ukraine

White House urges Americans to leave Ukraine

White House National Security Advisor, Jake Sullivan, warned that Americans in Ukraine should leave within one or two days.

"Any American in Ukraine should leave as soon as possible, and in any event in the next 24 to 48 hours," Sullivan said. "We obviously cannot predict the future, we don't know exactly what is going to happen. But the risk is now high enough and the threat is now immediate enough that this is what prudence demands."

He said anyone who stays is taking the risk that there may not be an opportunity to leave in the near future.

"If you stay, you are assuming risk, with no guarantee that there will be any other opportunity to leave and no prospect of a US military evacuation in the event of a Russian invasion," he said.

This stoked fears among investors that military action could be imminent, which would weigh further on the markets.

Hawkish fed

Soaring inflation is adding fuel to uncertainty and fear in the market. Inflation has been increasing at faster-than-expected rates, leading many to believe that the Fed will raise interest rates more aggressively. Higher rates tend to cause lower liquidity in the market and even periods of bearish sentiment.

The double hit of bearish news helped push major markets lower today.

By the close, the S&P 500 had fallen by 1.9% after having sunk as much as 2.38% during the day. The Nasdaq was down by over 3% at market close and had dropped by as much as 3.45% intraday. Bitcoin, ether and other cryptocurrencies took similar hits, with bitcoin dropping by over 2%. Ether had fallen by a hefty 4.65% by the close of the equity markets.

[stock_market_widget type="accordion" template="chart" color="#5B35D5" assets="^GSPC,^IXIC" start_expanded="true" display_currency_symbol="false" api="yf" chart_range="1mo" chart_interval="1d"]

[stock_market_widget type="accordion" template="chart" color="#5B35D5" assets="BTC-USD,ETH-USD" start_expanded="true" display_currency_symbol="true" api="yf" chart_range="1mo" chart_interval="1d"]

Top stories

Story: The Latest in Crypto Hiring: PayPal, Crypto.com Add to Digital Assets Headcount

• PayPal finalized its new crypto advisory council
• 21Shares, the largest issuer of cryptocurrency ETPs, hired three senior sales pros to enlarge its US footprint

Story: Funding Roundup: $1.19 Billion Invested in Crypto Companies This Week

• Big investments closed this week, including Polygon’s $450 million token sale and Binance’s $200 million investment in Forbes
• Funds launched this week include Hartmann Capital’s for $30 million, Infinity Ventures Crypto’s for $70 million and XYO’s for $20 million with partner Outliers Fund

Story: Crypto Exchanges Compete to Grab Super Bowl Spotlight

• Bitbuy spent roughly a quarter of its 2022 marketing budget on its Super Bowl ad starring Miami Heat point guard Kyle Lowry
• FTX will give away bitcoin as part of its ad campaign

Story: Robinhood Aims for ‘Crypto-First’ Approach to Global Expansion

• Robinhood’s chief brokerage officer said crypto would faciliate the “easiest” means to go global
• The executive also sided against “meme stocks,” labeling enthusiasm for such securities as “probably a fad”

Going forward

The increase in fear in the market is likely to remain as long as investors are uncertain about monetary policy and the tension between Russia and Ukraine. Investors should expect continued volatility at this time.

---

Get the news in your inbox. Explore Blockworks newsletters:

• The Breakdown: Decoding crypto and the markets. Daily.
• 0xResearch: Alpha in your inbox. Think like an analyst.