“In February 2022, we learned that money is no longer an asset you own; instead, it is a liability owed to you by a bank, brokerage, or government that may or may not pay. Digital assets rose +3-10% in a month during which:
- Canada sanctioned its own citizens.
- Russia caused complete financial ruin to its economy.
- The U.S. and Europe made a mockery of the financial system by handpicking which assets individuals could invest in and which banks could be utilized. This was a watershed moment for the current and future adoption of digital assets.
Bitcoin initially crashed following the first news of Russia’s invasion around 3:00 UTC on Thursday, February 24th, dropping from $37K to as low as $34.35K. But less than 24 hours later, BTC regained its previous price and began to move up to its highest level in weeks. On Saturday, February 26th, digital assets didn't react at all to Russian bank sanctions until almost 24 hours later when FX markets opened, causing Bitcoin to drop over 5% on the Sunday night open. The digital assets market was open first, and everyone had all the opportunities in the world to sell but didn’t until the cross-asset quant/macro desks got involved. The tail was wagging the dog. Upon the U.S. open on Monday, digital assets ripped higher again. “
And That’s Our Two Satoshis!
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