"Our research uncovers clear shifts in blockchain user behaviour during geopolitical conflicts, highlighting distinct reactions on Ethereum and Bitcoin. These insights may be key to forecasting crypto market dynamics in response to global events," says João Gomes Jr, MSc.
The study shows that people turned to crypto as a viable alternative financial system during wartime, to store, send, and receive money. The findings emphasize that cryptocurrency markets, while still in their infancy, react to geopolitical events.
Bitcoin users showed signs of caution leading up to the Russian invasion, with transactions declining during the pre-conflict phase, suggesting users were safeguarding their assets. However, once the conflict escalated, Bitcoin usage surged as users began transferring funds.
In contrast, Ethereum's user base remained consistent throughout, with a smaller group of highly active accounts continuing their transactions at a higher frequency.
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