The armed conflicts between Russia and Ukraine begin with an invasion by the Russian country. The whole world is watching, with great uncertainty and hoping that it does not end up becoming a bigger problem. Meanwhile, the financial markets will be absorbing the consequences of an event that could change the short-term course of crypto assets.

Last Thursday, anti-aircraft sirens were activated in Ukraine, which had not been required since World War II, in the face of a series of bombings by the Russian country, which have hit the Ukrainian capital, Kiev, this being the official declaration of war between the two countries. Uncertainty grows, since it is being said that there would be more countries involved, including the United States.

It all started last Monday, when Russian President Vladimir Putin recognized the independence of the Donetsk and Lugansk regions, ordering the entry of Russian troops into the Ukrainian country. After that, the president of the United States, Joe Biden, expressed his resentment of the actions by the Russian country, describing them as the beginning of an invasion. In addition, sanctions were established, since they blocked two financial institutions from providing services to Russia and the penalty for the Russian elite and their relatives. These events led to a sharp contraction in the crypto market, which led Bitcoin to trade low around $34,000. However, crypto assets seem to have quickly recovered from that shock. But what is happening with cryptocurrencies? What can we expect in the short term? There is great uncertainty today regarding the near future of crypto assets, since we find ourselves in a situation in which any event or decision-making could generate sudden movements in prices.

Bloomberg analyst Mike McGlone has mentioned that the war situation has already manifested itself in Bitcoin’s p, and that if it continues, volatility levels would remain quite high. Regarding the direction of the markets, he mentions that we have two possible scenarios:

• Optimistic scenario (for the crypto market): A sharp drop in the stock market will be generated, bringing two important events that will benefit cryptocurrencies. The first will be an announcement by the Federal Reserve, which will consist of NOT raising interest rates, and the second, the adoption of cryptocurrencies as a haven asset by investors. In addition, in the face of an imminent economic blockade against Russia, cryptocurrencies could significantly increase their transaction volume by providing the Russian country a decentralized way of carrying out operations around the world.
• Pessimistic scenario: As already mentioned, crypto assets could function as a commercial alternative for the Russian country in the face of imminent blockades, so one possibility would be that the countries of central Europe and the United States itself begin to restrict their use, for not giving any viable solution to the Russian country and keep it totally restricted.

It is important to mention that we are in a rather delicate situation, however, the sharp falls could represent endless opportunities to acquire valuable assets with a long-term projection.

On the other hand, one of the cryptocurrencies that swept despite the events presented in the week, and without a doubt the big winner in terms of projection and performance, was Terra (LUNA). The cryptocurrency grew by more than 40% in the previous week, after it was announced that more than $1 billion had been raised to establish a Bitcoin reserve for its stablecoin, UST. In other news, the impact of crypto assets on businesses is growing. Last week, German sportswear brand Puma acquired a decentralized “.eth” domain on the Twitter platform. In addition, through their NFTs marketplace account in OpenSea, it was confirmed that the company also recently acquired a group of NFTs related to cats. This reinforces the theory that a large number of companies could enter the metaverse in the coming months, the question here is, which will be the big winner? Bitcoin is breaking above $40,000 after the price shot up more than 7% this morning. Nearby is a fairly strong resistance level, which if breached could generate a very interesting move to $45,000. BTC/USDT 1D (TradingView Chart). Ethereum is above $2,750, with an upward movement of more than 6% and a next level to break at $2,850. ETH/USDT 1D (TradingView Chart) There is no doubt that these will be tough days for the entire world, since a conflict of great impact is taking place that, in addition to affecting the financial markets, is affecting a large number of people. The short-term future of cryptocurrencies is uncertain, but without a doubt we find a great opportunity in assets that will revolutionize the world, adding value to society. Let’s just ask for peace and the well-being of our friends in Russia and Ukraine. Without further ado, we wish you an amazing week.