Ukrainian President Volodymyr Zelenskyy said on Thursday that, shortly after a meeting between Russian President Vladimir Putin and U.S. envoy Steve Witkoff had ended, Russian forces fired 21 ballistic missiles at Kyiv in three waves, severely damaging infrastructure and killing at least two people. Zelenskyy said bluntly that Russia’s precision strikes proved its position had not undergone any substantive change.
The surprise attack shattered optimistic expectations that diplomatic efforts might ease tensions. A large-scale missile attack immediately following high-level diplomatic contacts suggests that the intensity of deterrence among the parties to the geopolitical contest has not diminished outside the negotiating table, further increasing the risk that the conflict will drag on and remain uncertain.
Risk aversion quickly took hold in traditional financial markets, putting short-term pressure on oil and conventional defensive assets such as the U.S. dollar. Renewed concerns about geopolitical spillover prompted institutional investors to adopt a highly cautious approach to asset allocation, significantly tightening overall macro liquidity preferences.
For crypto assets, an escalation in geopolitical conflict often first triggers deleveraging and selling pressure, with capital more likely to flow back into U.S. dollar cash than into highly volatile risk assets. Without clear signs of de-escalation, core assets such as $BTC may remain under pressure and trade unevenly in the short term.
#Geopolitics #UkraineRussiaWar #MacroEconomics
The surprise attack shattered optimistic expectations that diplomatic efforts might ease tensions. A large-scale missile attack immediately following high-level diplomatic contacts suggests that the intensity of deterrence among the parties to the geopolitical contest has not diminished outside the negotiating table, further increasing the risk that the conflict will drag on and remain uncertain.
Risk aversion quickly took hold in traditional financial markets, putting short-term pressure on oil and conventional defensive assets such as the U.S. dollar. Renewed concerns about geopolitical spillover prompted institutional investors to adopt a highly cautious approach to asset allocation, significantly tightening overall macro liquidity preferences.
For crypto assets, an escalation in geopolitical conflict often first triggers deleveraging and selling pressure, with capital more likely to flow back into U.S. dollar cash than into highly volatile risk assets. Without clear signs of de-escalation, core assets such as $BTC may remain under pressure and trade unevenly in the short term.
#Geopolitics #UkraineRussiaWar #MacroEconomics