Global financial markets faced sudden turmoil as Russian President Vladimir Putin signed a decree authorizing the use of nuclear weapons against non-nuclear states under specific conditions.
BREAKING: President Putin signs decree allowing broader use of nuclear weapons.Putin Approves New Nuclear Doctrine Amidst TensionsIf this is true this is a sign of world war 3 (WWIII) and Russia is responsible for it. pic.twitter.com/oL8vF8GHlV
— Elon Musk {Parody} (@i_m_elon) November 19, 2024
The announcement and escalating tensions involving U.S. support for Ukraine triggered sharp selloffs in the crypto and stock markets. Cryptocurrencies like Bitcoin and Ethereum, along with global stock indices, reversed recent gains, igniting concerns about further instability.
Putin’s Nuclear Decree Sparks Market Panic
On November 19, President Vladimir Putin signed a decree permitting Russia to deploy nuclear weapons against non-nuclear states backed by nuclear-armed nations. According to reports, the decree emphasizes collective responses, stating, “Any attack by a nation in a military bloc will be considered an attack by the entire bloc.”
The move followed U.S. President Joe Biden’s approval of Ukraine’s use of U.S. missiles for operations inside Russian territory. These developments heightened geopolitical uncertainties, creating ripple effects across global markets.
The stock markets globally experienced significant selloffs, with major indices shedding earlier gains. Fears of escalating military confrontations exacerbated panic selling. Market analysts highlighted how heightened geopolitical risks often lead to flight-to-safety strategies, causing investors to liquidate riskier assets.
Crypto Market Takes a Hit
The crypto market also saw a sharp decline in the hours following the announcement. Leading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) experienced a 0.50% drop, while altcoins such as XRP, Dogecoin (DOGE), and Cardano (ADA) declined over 1% in the same period.
Recently, high-performing tokens like PNUT, RAY, and XTZ emerged as the biggest losers, with PNUT seeing a 5% drop to $1.68.
Data from Coinglass revealed widespread liquidation of long positions, intensifying the selloff. Bitcoin’s on-chain metrics, analyzed by CryptoQuant CEO Ki Young Ju, suggested that 99.3% of unspent transaction outputs (UTXOs) remained profitable, which might drive further profit-taking.
Analysts warn that this trend could deepen corrections, pushing Bitcoin prices toward key support zones of $85,800–$83,250 or even $75,520–$72,880.
Stock Futures Reflect Broader Market Decline
U.S. stock futures linked to the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite mirrored the downturn in European markets.
Pre-market trading showed notable declines in shares of companies tied to crypto, with Coinbase dropping 3% to $315.50 and MicroStrategy falling 1.31% to $379.76.
Market experts caution that growing geopolitical tensions, combined with extreme market sentiment as indicated by the Crypto Fear and Greed Index, could increase volatility.
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