Putin says that “bloodshed will be fully and wholly” on the conscience of Ukraine’s government if Kyiv does not cease military action
Tension at Ukraine’s border seems to have increased, leading to further sell-offs

Bitcoin and European markets fall after Putin addresses the Russian people

European equity markets fell Monday as Russian President Vladimir Putin pushed through plans to recognize the independence of two Russia-backed territories in Ukraine, stoking the threat of an invasion. Cryptocurrencies were unscathed.

Putin outlined the move in a speech, saying any further bloodshed would be on the Ukraine government's conscience.

“As for those who captured and are holding on to power in Kyiv, we demand that they immediately cease military action," Putin said. "If not, the complete responsibility for the possibility of a continuation of bloodshed will be fully and wholly on the conscience of the regime ruling the territory of Ukraine."

The prime minister of the United Kingdom, Boris Johnson, condemned the ploy.

"This is plainly in breach of international law. It's a violation, a flagrant violation of the sovereignty and integrity of Ukraine," Johnson said. "It is a repudiation of the Minsk process and the Minsk agreements, and I think it's a very ill omen and a very dark sign."

Putin's speech wasn't helpful to already-volatile and hurting markets. US markets were closed for Presidents' Day, but the UK's FTSE 100 and Germany's DAX both fell. The FTSE 100 dropped by 1.14%, while the DAX fell by almost 2.1%.

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

Bitcoin took a mild hit, starting the day positive, but ending the business day down by 0.25%. Ether remained positive to close up 1.52%. Terra, a top-ten altcoin, seemed to ignore the global uncertainty with an 8.5% daily pump.

[stock_market_widget type="accordion" template="chart" color="#5B35D5" assets="BTC-USD,ETH-USD,LUNA1-USD" start_expanded="true" display_currency_symbol="true" api="yf" chart_range="1mo" chart_interval="1d"]

Top stories

Story: Government Crypto Powers in Spotlight After Canadian Trucker Protest Is Disbanded

Canadian truckers protesting Covid vaccine mandates raised more than $1 million in bitcoin
The bitcoin fundraise came after the collective was banned from GoFundMe and another crowdfunding platform

Story: OpenSea Scammers Went Phishing and Caught Over 250 NFTs From 17 Users

“This attack did not originate on [OpenSea],” the company’s CEO and co-founder said
Last week, OpenSea launched a customer service server to mitigate risk of fraudsters pretending to be members of the company’s staff

Story: With US Bitcoin ETF in Limbo, Crypto Exchange-traded Products All the Rage in Europe

While US investors wait for a physically-backed ETF, exchange-traded products are dominating in Europe
The ETP structure is often the only option that fits regulatory guidelines, issuers say

Story: Russian Finance Ministry Says Crypto Shouldn’t Be Legal Currency

The Russian Ministry of Finance has revealed details of proposed cryptocurrency law
The announcement comes as tensions between Russia and Ukraine mount

Going forward

Putin's remarks on Kyiv and the two Russian-backed territories in Ukraine seem to have set the stage for more Russian advancements. The potential for conflict appears to have increased, leading to further sell-offs as investors await the next development.

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.