The Russian invasion of Ukraine has sent shockwaves through global markets. Since the invasion began, Bitcoin immediately gave up 11 percent1 but has pared losses significantly.

In the short-run Bitcoin is in risk-off mode but the long-term implications of the invasion on Bitcoin’s role in the world are more complicated:

For example, U.S. sanctions and other punitive measures could include cutting Russia and its oligarchs from SWIFT, the U.S. controlled global payment system. (Check out this week’s episode of DeFi Decoded for an analysis on how global events are shaping market).

Just prior to the invasion, Bitcoin correlation to the NASDAQ had dropped from over 90% in January to 18% since February 1st (See quant section).

According to Blockworks, President Joe Biden is set to issue an executive order on regulating crypto this week. Last fall, we had Perianne Boring as a guest on CryptoTalks to discuss the regulatory landscape in the U.S.