Geopolitical risk remains a dominant variable for financial markets, with investors tracking developments in Eastern Europe and any potential diplomatic breakthroughs. In the crypto market, traders are weighing the risk-off impulse against ongoing liquidity constraints and funding costs.
Although Bitcoin often benefits from safe-haven dynamics, the broader crypto market faces tightening liquidity and funding pressures, which can squeeze mid-cap tokens and other high-beta assets.
Analysts warn that a protracted standoff could sustain a high-volatility regime, underscoring the need for disciplined risk management. Traders are advised to tighten leverage, monitor funding rates on major exchanges, and favor liquidity-rich positions.
Looking ahead, allocations may shift toward assets with robust liquidity as the geopolitical backdrop evolves; institutions may recalibrate risk budgets and traders await clearer market signals.
Source: https://en.coinotag.com/breakingnews/bitcoin-rides-safe-haven-demand-as-russia-ukraine-peace-plan-fallout-fuels-market-volatility
