Tensions Escalate in Eastern Europe: What It Means for Bitcoin

Overnight, it was announced that U.S. President Joe Biden has approved the deployment of long-range missiles in Ukraine to strike Russia. This decision marks a significant escalation, as the Advanced Tactical Missile System (ATACMS) was previously restricted for use solely within Ukraine's borders. The change comes shortly after thousands of North Korean soldiers were reportedly deployed in Moscow, likely in support of Russia. Meanwhile, President-elect Donald Trump has claimed he will end the war shortly after taking office, a sentiment echoed by Ukrainian President Zelensky, who suggested the conflict would conclude sooner under Trump’s leadership.

The lifting of restrictions on ATACMS and increased global tensions amplify the risk of further conflict, raising concerns about the potential for World War III.

What does this mean for Bitcoin?

Bitcoin, being a relatively young asset, has experienced only a few significant geopolitical events. When Russia invaded Ukraine in February 2022, Bitcoin briefly dropped by 10% before recovering. More recently, escalations in the Middle East caused short-term corrections in Bitcoin and broader markets. Should the conflict in Ukraine worsen, we can expect another brief correction in Bitcoin’s price.

During times of war, risk-on assets like Bitcoin tend to underperform, while the U.S. dollar and traditional safe havens such as gold show strength. Although Bitcoin is still relatively young and currently viewed as a risk-on asset, its maturation is expected to bring greater correlation with gold, positioning it as a safe haven over time. Nevertheless, such corrections are typically short-lived and do not disrupt Bitcoin's long-term bullish trajectory.

If you feel underexposed or worry about missing out, now is a good time to bolster your Bitcoin position before the new all time highs are made. You’re still early, and if you have long-term confidence in the crypto space, this is an ideal time to enter. Contact your Stormrake Crypto Broker to seize these golden opportunities.

Stormrake Spotlight: ONDO ($1.015)

Ondo is performing impressively, up 10% from yesterday's morning note and briefly trading above $1.04. Despite Bitcoin's quiet consolidation, Ondo has shown remarkable strength. Once Bitcoin regains momentum, Ondo could likely reach its all-time high in the near future.

BTC/USD Key Levels and Price Action:

Bitcoin has been experiencing short-term volatility, trading within a clear range between $89,000 and $93,000. The sideways movement has resulted in a bullish crossover of key moving averages. However, BTC is currently testing the 55 EMA and appears poised to close below it, suggesting a potential retest of the $90,000 support level.

BTC Total ETF Flows for 18 Nov: $ + 60.2 million

ETH/USD Key Levels and Price Action:

Ethereum has bounced strongly from its established $3,000 support level, breaking above all key moving averages. This bullish momentum has driven ETH to the key CPR resistance at $3,220—a level it failed to surpass just days ago. Will this attempt succeed? The 21 EMA is expected to act as support while ETH remains in an uptrend.

ETH Total ETF Flows for 18 Nov: $ - 18.4 million

Written by Alexandar Artis

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