Ukraine Peace Deal Sparks Optimism in Crypto Market: What to Expect?
The crypto market is poised for a significant surge as Ukraine has agreed with the United States to bring an end to the four-year war with Russia. According to a US official, the agreement is still subject to some fine-tuning, but the prospects of peace have sparked optimism in the markets, including the cryptocurrency space.
As the news of the agreement broke, the crypto market responded positively, exhibiting notable bullish signs. With the Ukrainian President set to finalize the deal in Washington D.C. this month, the community is keenly waiting for the potential implications of this critical development.
Ukraine to End the Prolonged War with Russia
In a recent post on the X platform, VanEck Head Matthew Sigel cited the ABC News report that unveiled the latest development within the Ukraine-Russia war. According to the report, Ukraine has “agreed to a peace deal” after days of discussions mediated by US President Donald Trump. The report added, “There are some minor details to be sorted out but they have agreed to a peace deal.”
Ukrainian President Volodymyr Zelenskyy is expected to visit Washington D.C. this month to finalize this peace agreement. Ukrainian national security adviser Rustem Umerov stated that the visit is planned for the earliest suitable date in November, with the aim of completing the final steps of the agreement. Umerov noted, “Our delegations reached a common understanding on the core terms of the agreement discussed in Geneva.”
Crypto Market Surges: Is a Bull Run on the Horizon?
Notably, the crypto market has been experiencing severe volatility over the past few weeks, especially since the October 11 crash. Despite minor fluctuations and attempts to rebound, the industry saw an overarching negative trend in this period. While the global digital asset industry slipped below $3 trillion, top cryptocurrencies like Bitcoin experienced major downturns, dropping below $85k.
In response to the Ukrainian peace deal, the crypto market has seen a notable rebound, recovering from the recent losses. As of press time, the industry is at $3.01 trillion, up 2.1%. Bitcoin has surged by a marginal 0.80% over the past 24 hours, but is still down by 4.5% on a weekly basis.
As the crypto market is highly sensitive to similar geopolitical developments, the peace deal is expected to further bolster the industry’s positive sentiment. If a peace deal is reached, it could lead to a surge in investor confidence and subsequently a rally in the industry. Conversely, any signs of increased tensions could lead to market sell-offs and a potential crash.
What is in the US Peace Proposal? Kremlin Weighs in
Kremlin spokesperson Dmitry Peskov described the situation surrounding the Ukrainian peace talks as an “information frenzy” with contradictory statements being published. He noted that the original US 28-point framework is “currently the only substantive thing” and could be a good basis for talks, as stated by President Vladimir Putin.
According to Peskov, the proposal includes several key points that align with long-held Russian demands, including significant cuts to Ukraine’s armed forces, ceding of territory not currently occupied by Russia, and limitations on Ukraine’s military capabilities. Russia would also retain control over occupied territories, with potential recognition of its 2014 annexation of Crimea. Peskov confirmed that Russia will thoroughly examine the proposal in due course.
