The Ukraine crisis has washed out the traditional finance and crypto markets. What are the charts telling us about the macro environment? Covered: S&P 500 Gold Bitcoin VIX The macro environments have taken drastic shifts overnight, and although we’re seeing losses in the traditional finance and crypto markets, keep in mind that the losses of […] The post Macro Market Responds To Ukraine Crisis appeared first on CryptosRus.

Macro Market Responds To Ukraine Crisis

The Ukraine crisis has washed out the traditional finance and crypto markets. What are the charts telling us about the macro environment?

Covered:

  • S&P 500
  • Gold
  • Bitcoin
  • VIX

The macro environments have taken drastic shifts overnight, and although we’re seeing losses in the traditional finance and crypto markets, keep in mind that the losses of human life far outweigh the importance of price reactions. Rather than forecasting the future, let’s analyze the markets and see if there’s anything we can take away from it amid the Ukraine crisis.

RECOMMENDED: PUTIN ANNOUNCES MILITARY ACTION; EXPLOSIONS REPORTED IN UKRAINE

S&P 500

The S&P 500 has been dipping in tandem with the crypto markets for a while now, but today’s market open marked another 2.2% leg down for the index.

It appears that the S&P 500 topped out during the onset of 2022, and has been coming down ever since. Our last economic downturn from the coronavirus pandemic took the stock market down over 35%, so it’s anyone’s guess as to when things will turn around.

Of course, individual stocks have been feeling the downturn as well.

Gold

Gold, on the other hand, is rallying off the onset of the Ukraine crisis. Regardless of how you feel about Bitcoin’s place as the superior store of value, it looks like the market is still flocking to humanity’s historic inflation hedge. It’s up 8% since the end of January.

This doesn’t exactly mean anything bad for Bitcoin, but it sure tells us that the market still thinks gold is the supreme hedge against economic uncertainty. It may just be too soon for Bitcoin to be viewed in the same light.

Bitcoin

Speaking of Bitcoin, the Ukraine Crisis seems to have merely completed the downturn of a drop-off that began well before the war broke out in Ukraine.

At the time of writing, Bitcoin is trading at $35,711. From its recent local high of $39,000, the top crypto asset came toppling back down as Russia escalated tensions with Ukraine.

Since November, this trend line has been keeping Bitcoin down. Measured from the end of January, Bitcoin has fallen over 5% while gold has risen over 8%. This discrepancy is rather telling about how the markets are currently viewing the asset classes.

VIX

Lastly, I’d like to share the Volatility Index (VIX), which historically skyrockets during uncertainty in macro markets. I’ve laid out my analysis and will explain what I’m seeing here.

As you can see, the VIX’s last parabolic rally began roughly around 2003 before the 2008 financial crisis marked the peak of economic volatility. Since coming back down from then, it appears that the VIX began coiling up for its next parabolic run, which as we can see from today’s current environment, looks to be accelerating the VIX once again.

In times of uncertainty, however, it’s important to take a step back and reconnect with what’s most important. If Bitcoin has indicated anything in the past 13 years, it’s that crypto probably isn’t going away anytime soon. But in the meantime, pay attention to what matters today.

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