Global markets are reeling after Russian President Vladimir Putin signed a controversial nuclear decree, escalating tensions with non-nuclear states supported by nuclear powers. This announcement has rattled investors worldwide, triggering sharp declines in both the crypto and stock markets.
Putin’s decree permits the use of nuclear weapons against non-nuclear states under specific conditions, particularly if those states are aligned with nuclear-armed nations. The move, seen as a response to increased U.S. support for Ukraine, has created fears of a broader global conflict. The decree emphasizes collective retaliation, treating attacks by military alliances as threats from the entire bloc, a stance that raises the specter of a broader escalation.
The cryptocurrency market was quick to react, with leading tokens like Bitcoin (BTC) and Ethereum (ETH) losing momentum. BTC and ETH dropped by 0.50%, while popular altcoins such as XRP, Dogecoin (DOGE), and Cardano (ADA) recorded over 1% losses. The selloff extended to high-performing tokens like PNUT, which plunged 5% to $1.68. Liquidations surged as panicked investors offloaded riskier assets. According to Coinglass, long positions across major cryptos were wiped out, intensifying the downward pressure. On-chain analysis suggests that Bitcoin could test critical support levels between $85,800 and $83,250, or even as low as $72,880.
Global stock markets followed suit, with major indices reversing earlier gains. U.S. stock futures tied to the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite reflected the broader downturn. Key crypto-related stocks like Coinbase dropped 3% to $315.50, while MicroStrategy slipped 1.31% to $379.76. European markets also experienced notable selloffs, highlighting the widespread panic among investors.
Geopolitical uncertainty is often a precursor to market volatility. Putin’s decree, combined with U.S. President Joe Biden’s approval of Ukraine’s use of American missiles, has exacerbated fears of an escalating conflict. Investors typically flee riskier assets during such times, opting instead for safe-haven investments like gold or the U.S. dollar. The Crypto Fear and Greed Index, a measure of market sentiment, has swung toward “extreme fear,” signaling potential for further instability.
Market analysts warn that the current selloff could deepen as geopolitical risks mount. For cryptocurrency traders, key support levels may act as temporary lifelines, but broader sentiment remains fragile. For stock market investors, rising volatility and uncertainty could prolong the downturn. The ripple effects of Putin’s decree will likely dominate headlines in the days to come. Traders and investors are advised to remain cautious, as further developments could shape the trajectory of global markets.
