Key Points
- The United States and Ukraine have proposed a 30-day ceasefire, pending Russia’s approval.
- Bitcoin’s market reactions to global conflicts have shown initial volatility followed by recovery.
The United States and Ukraine have put forward a proposal for an immediate 30-day ceasefire. The proposal is contingent on Russia’s approval. The agreement was reached following high-level talks in Jeddah, Saudi Arabia.
Kyiv has expressed its willingness to accept the truce, provided Russia also implements it. The ceasefire can be extended by mutual agreement.
The U.S. Commitment
In return for the ceasefire, the United States has committed to resume intelligence sharing and security assistance to Ukraine. It will communicate to Russia that Russian reciprocity is key to achieving peace. The negotiations in Jeddah reportedly went on for over eight hours.
Bitcoin’s Reaction to Global Conflicts
Bitcoin’s response to global conflicts has been mixed, with investors using it as both a risk asset and a potential safe haven. Market movements have shown patterns of initial volatility followed by recovery. This pattern was observed following the recent developments in Ukraine.
In February 2022, Bitcoin’s price fell below $35,000 as Russian military operations began in Ukraine. However, research shows that while Bitcoin trading volumes decreased with every increase in conflict intensity, the cryptocurrency’s price often rebounded within approximately 50 days, demonstrating its resilience.
During the Israel-Gaza conflict in October 2023, Bitcoin’s price initially declined, reflecting broader market apprehensions. However, cryptocurrencies have often served as a safe-haven asset during geopolitical crises, with some cryptocurrencies experiencing positive abnormal returns before such events.
Following the Ukraine announcement on March 11, crypto markets showed a positive reaction, with Bitcoin (BTC) jumping above $83,000 and the general market showing slight gains.
In recent weeks, Bitcoin has been on a downward trend following President Donald Trump’s announcement of tariffs on Canadian steel and aluminum, as well as mixed reviews regarding the U.S. Strategic Crypto Reserve.