Geopolitical Tensions are High, Liquidity is Low, and Bitcoin is a Reserve Asset
Feb 24, 2022
• 7
Min Read
Key Takeaways
Markets continue to experience turbulence in the face of growing geopolitical tensions and full-scale war between Russia and Ukraine.We examine recent growth in spreads on major exchanges, highlighting a persistent low-liquidity environment.Option volumes point to the likelihood that many investors are maintaining long positions while hedging risk with derivatives.The market is already questioning the ability of the Fed to raise rates as indicated by a decline in projected rate hikes.We discuss the Terra ($LUNA) blockchain’s adoption of bitcoin as a reserve asset and discu...