Cryptocurrency prices have dropped over the weekend

As the conflict between Ukraine and Russia escalated, cryptocurrency prices continued to fall last week, following global financial market patterns. Bitcoin it now costs around $ 38, and fell below $ 000 last week. Meanwhile, the price Ethereum is around $ 2600, falling below $ 2300 last week. This is a continuation of the recent trend where cryptocurrencies behave as "risk assets". BTC in particular mirrors unprecedentedly US equities, meaning that based on the performance of the S&P 500 Index, you can expect a price decline seen over the past few weeks. In the current climate, it is not surprising that many investors are seeking to reduce risk, and valuations reflect this. If the current tensions ease quickly, we may notice a return to risk appetite.

However, we still face high inflation, interest rate hikes and quantitative tightening, which means the market may need more transparency before prices really start to rise again.

Ukrainians are turning to cryptocurrencies under martial law

After the Ukrainian government cracked down on digital transfers, people are clearly turning to cryptocurrencies. According to local data, domestic buyers turned towards stablecoina Tether's USDT, pegged to the US dollar. Tether, the most popular stablecoin, has remained relatively stable in recent weeks, unlike more famous cryptocurrencies such as bitcoin and ethereum. Ukraine was a supporter of digital assets, and in 2021 Ukrainian President Volodymyr Zelenskiy signed a law that paved the way for the central bank to issue its own digital currency.

In fact, the country was modernizing its payments market so that its national bank could issue digital currencies. In the past few days, the demand for Tether and other frontline tokens has spiked cryptocurrencies growing in importance, not only as an alternative when trust in and access to fiat currencies is severely restricted, but also as a tool for collective change.

Cryptocurrency crowdfunding helps Ukrainians

There are reports that during the crisis, Ukrainian NGOs recorded an influx of donations via crypto-assets. One of the donors sent over $ 3 million in bitcoin as Ukrainians turn to crowdfunding to defend themselves and prevent banks or traditional financial means from accessing the funds. According to Elliptic, more than 4000 donations have been made so far as volunteer groups and NGOs advertise their crypto wallets online. These changes show that cryptocurrencies as an asset class are not only responsive to events as they develop, but are also directly related to field requirements, which may therefore result in increased market sensitivity.

BNY Mellon wants to strengthen institutional exposure to cryptocurrency

BNY Mellon is reportedly developing a digital asset storage platform that would allow institutional clients to gain exposure to cryptocurrencies. BNY would allow clients to store the most popular assets in the bank's crypto wallets; then, once approved by regulators, the service will be expanded and integrated into further digital assets. While it may not be up and running for a few more months, it looks like BNY is looking to stay ahead of its institutional peers with this latest venture.

Perhaps this is not unexpected given that it was one of the first institutions to offer its clients exposure to cryptocurrencies and clearly sees it as an offer that will generate significant demand. It will probably appear in the United States for the start. We will see more institutional finance impact the market - acting as a potential stimulus in the coming months.