Crypto Market News: Reports of the likelihood of a military coup in Russia emerge in what could be a major geopolitical development in the face of the Ukraine war. Going by the past developments in the region and the subsequent financial market reaction since the war broke in 2022, the global markets are most likely to react when they open on Monday, June 26, 2023. Hence, the crypto market too could have a significant impact from the developments, considering the ramifications Russia’s oil and gas market could potentially have on the global markets.
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Ongoing developments in Russia indicate to a possible feud between Yevgeny Prigozhin, the head of the Wagner Group, and the country’s president Vladimir Putin. The president warned of ‘crushing’ the group’s attempted coup, which involves marching from southern Russia towards Moscow.
Russia Civil War & The Impact On Crypto
Given that Russia is one of the major supplier of oil, gas and other raw materials to many countries, prospects of a full blown civil war could mean massive impact on global markets. Hence, any dip in stock prices on Monday could potentially mean upside to the Bitcoin price and the altcoins. However, the crypto market could take longer to react to the situation, as traders are likely to prefer Bitcoin as safer asset in the wake of global uncertainty.
Also, it remains to be seen how long the situation takes to normalize trader sentiment and how the internal coup will impact Russia’s invasion in Ukraine. More importantly, there could be significant liquidation attempts via crypto market from Russian investors. It may be recalled that Russia prepared a draft law recently to allow crypto for international trade. At the time, it was seen as the country’s strategic move to target the US Dollar’s dominance as a reserve currency.
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When the Ukraine war erupted in March 2022, it was speculated that the Russian invasion could pave way for Bitcoin in becoming the primary digital store of value. The possibility of a coup only reinforces this argument, as internal conflict could only worsen the country’s financial health and liquidity.
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