Crypto

How do geopolitical tensions affect cryptocurrency markets | News.az

Published

3 weeks ago

March 17, 2026

How do geopolitical tensions affect cryptocurrency markets | News.az

Cryptocurrency markets are increasingly shaped not only by technology and finance but also by global geopolitical developments.

From armed conflicts and sanctions to trade disputes and energy shocks, geopolitical tensions now play a direct role in driving volatility, investor behavior, and long term narratives in the crypto space. This FAQ explainer examines how and why global instability influences digital assets, and what it means for investors and policymakers.

What are geopolitical tensions in the context of financial markets

Geopolitical tensions refer to conflicts, rivalries, and uncertainties between countries or regions that can disrupt economic stability. These include military conflicts, diplomatic crises, sanctions, trade wars, and political instability.

In traditional markets, such tensions often lead to volatility in stocks, commodities, and currencies. Increasingly, cryptocurrencies are also reacting to these developments, reflecting their growing integration into the global financial system.

Why do geopolitical events impact cryptocurrency markets

Geopolitical events affect investor confidence, capital flows, and economic expectations. When uncertainty rises, investors reassess risk and often reallocate assets.

Cryptocurrencies are sensitive to these shifts because they are still considered high risk assets. At the same time, they offer unique features such as decentralization and borderless transactions, which can make them attractive during certain types of crises.

As a result, geopolitical events can both boost and weaken crypto markets depending on the nature of the situation.

Is crypto considered a safe haven during geopolitical crises

The idea of cryptocurrencies as safe haven assets is complex and still evolving.

In theory, Bitcoin has characteristics similar to gold, including limited supply and independence from central banks. This has led some investors to treat it as a hedge against geopolitical instability.

In practice, however, crypto often behaves like a risk asset. During major global shocks, such as sudden escalations in conflict, investors may sell crypto alongside stocks to reduce exposure.

That said, in specific situations involving currency instability or restricted access to banking systems, cryptocurrencies can function as a practical alternative for storing and transferring value.

How do wars and military conflicts influence crypto prices

Military conflicts create uncertainty in global markets, affecting investor sentiment and economic expectations.

In the early stages of conflict, markets often react with sharp volatility. Crypto prices may drop as investors move to safer assets or cash. However, if the conflict leads to prolonged instability, crypto can benefit from increased demand as an alternative financial system.

Conflicts can also drive real world use cases for crypto. In some regions, individuals and organizations use digital assets to move funds across borders quickly when traditional systems are disrupted.

What is the effect of economic sanctions on crypto markets

Sanctions are a major geopolitical tool that can have direct implications for cryptocurrencies.

When countries or entities are cut off from global financial systems, they may turn to alternative channels, including crypto, to conduct transactions. This can increase demand for digital assets in affected regions.

At the same time, governments and regulators closely monitor such activity, leading to stricter rules and enforcement measures. This creates a balance between increased usage and increased regulatory pressure.

Sanctions can also impact global energy markets and currencies, indirectly influencing crypto prices.

Can crypto be used to bypass sanctions

There is ongoing debate about the extent to which cryptocurrencies can be used to bypass sanctions.

While crypto offers a degree of anonymity and decentralization, large scale transactions are still traceable on public blockchains. Authorities have developed tools to monitor suspicious activity and enforce compliance.

However, smaller scale usage and peer to peer transactions can still occur outside traditional oversight. This has raised concerns among regulators and contributed to increased scrutiny of the crypto sector.

How do energy markets and oil prices affect crypto

Geopolitical tensions often impact energy markets, particularly oil and gas prices. These changes can influence crypto markets in several ways.

Higher energy prices can increase inflation, which may drive interest in alternative assets like Bitcoin. At the same time, rising costs can reduce disposable income and limit retail investment in crypto.

Energy prices also directly affect crypto mining operations, especially for proof of work networks like Bitcoin. Higher electricity costs can reduce profitability for miners and influence network dynamics.

What is the relationship between crypto and traditional safe haven assets

Cryptocurrencies are often compared to traditional safe haven assets such as gold and government bonds.

During geopolitical crises, gold typically rises as investors seek stability. Crypto has sometimes followed this pattern but not consistently.

In many cases, crypto correlates more closely with equities, particularly technology stocks. This suggests that it is still viewed primarily as a growth oriented asset rather than a defensive one.

However, the correlation can shift over time, especially as the market matures.

How do currency crises influence crypto adoption

Currency instability is one of the strongest drivers of crypto adoption.

In countries experiencing high inflation or currency devaluation, individuals may turn to cryptocurrencies to preserve value. This is particularly evident in regions facing economic crises or strict capital controls.

Geopolitical tensions can trigger such conditions, increasing demand for digital assets as an alternative to local currencies.

This type of adoption is often practical rather than speculative, focusing on utility rather than investment returns.

What role do central banks and governments play

Governments and central banks respond to geopolitical tensions with policies that can affect crypto markets.

These include interest rate changes, capital controls, sanctions, and regulatory measures. Each of these actions can influence investor behavior and market dynamics.

In addition, many countries are exploring central bank digital currencies. These initiatives are partly driven by the desire to maintain control over financial systems in an increasingly digital and geopolitically complex world.

How do global trade tensions affect crypto

Trade disputes and tariffs can disrupt global supply chains and economic growth. This uncertainty can lead to volatility in financial markets, including crypto.

Investors may adjust their portfolios in response to changing economic conditions, affecting demand for digital assets.

Trade tensions can also influence currency values, which in turn impact crypto markets. For example, a weakening currency may drive local investors toward cryptocurrencies.

Does crypto benefit from financial system distrust

One of the core narratives behind crypto is its independence from traditional financial institutions.

During periods of geopolitical tension, trust in banks and governments can decline. This can increase interest in decentralized systems that operate outside traditional frameworks.

This narrative is particularly strong among certain investor groups and can contribute to increased demand during times of crisis.

What are the risks of relying on crypto during geopolitical instability

While crypto offers potential advantages, it also carries risks.

Price volatility can undermine its effectiveness as a stable store of value. Regulatory crackdowns can limit access or usage in certain regions.

Security risks, including hacks and fraud, remain concerns. In addition, technological barriers can make it difficult for some users to adopt crypto during crises.

These factors mean that crypto is not a universal solution to geopolitical challenges.

How are regulators responding to the geopolitical dimension of crypto

Regulators are increasingly aware of the intersection between crypto and geopolitics.

Efforts are underway to strengthen compliance requirements, improve monitoring of transactions, and prevent illicit use of digital assets.

International cooperation is also expanding, with governments sharing information and developing coordinated approaches to regulation.

These measures aim to balance innovation with security and stability.

What does this mean for investors

For investors, geopolitical awareness is becoming essential in understanding crypto markets.

Monitoring global developments can provide insights into potential market movements. However, predicting the exact impact of geopolitical events remains challenging.

Investors should consider diversification, risk management, and long term strategies rather than reacting to short term news.

Understanding the broader context can help in making more informed decisions.

How might the role of crypto evolve in future geopolitical crises

As the crypto market matures, its role in global finance is likely to expand.

In future crises, cryptocurrencies may become more integrated into financial responses, both as investment assets and as practical tools for transferring value.

At the same time, regulatory frameworks will continue to evolve, shaping how crypto is used and perceived.

The balance between decentralization and oversight will be a key factor in determining its future role.

Conclusion

Geopolitical tensions are now a central factor influencing cryptocurrency markets. They affect investor sentiment, economic conditions, and real world usage of digital assets.

While crypto can offer alternatives during periods of instability, it also remains highly volatile and sensitive to global developments.

Understanding the complex relationship between geopolitics and crypto is essential for navigating this rapidly evolving market. As global uncertainty continues, cryptocurrencies are likely to play an increasingly visible role in the financial landscape.

News.Az

By Faig Mahmudov

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Crypto

Crypto Investment Scams Were the Most Costly Type of Fraud in the U.S. in 2025

Published

5 hours ago

April 7, 2026

Press Room

Crypto Investment Scams Were the Most Costly Type of Fraud in the U.S. in 2025

Americans lost $7.2 billion to crypto investment scams in 2025, according to a new report from the FBI, making it the top source of financial losses from fraud reported to the agency last year. Many people don’t call the FBI after getting scammed, which means the real total is likely far larger.

The news comes from the FBI’s 2025 Internet Crime Complaint Center (IC3) annual report, released Monday, which tracks not just crypto investment fraud, but online scams targeting the elderly, and ranswomware attacks, among others. The agency received 1,008,597 total complaints in 2025, up from 859,532 complaints in 2024. The total amount lost was over $20 billion last year.

Investment fraud was the most common type of scam reported, accounting for 49% of all cyber-related complaints in 2025, with a majority of those related to crypto investment scams.

Crypto investment scammers make an effort to appear like legitimate operations, promising huge returns to unsuspecting marks. Victims are first contacted through a number of ways, including text messages, social media, Google ads, and dating apps. Scammers will sometimes set up websites made to look like investment platforms where victims can send crypto and watch as their profits tick up steadily.

What the victim doesn’t understand is that the number they’re seeing rise each day is fake. The crypto has been sent to the scammers and the number they’re seeing in their supposed account is not real. The website is a mirage that isn’t actually holding their crypto, whether it’s bitcoin, ether, or any number of shitcoins. But as that number rises, the scammers encourage the victims to “invest” even more.

What happens when you try to extract any of that money? That’s where the victim might start to get suspicious. Because there’s always an excuse. And more often than not, the scammers will tell a victim that there are fees for withdrawing money.

The FBI has released its IC3 report annually for 25 years and 2025 is the first year that features a section on artificial intelligence. The FBI received 22,364 complaints about AI-assisted crimes, totaling $893 million in lost money. But that’s likely a vast undercount of the problem, given the fact that many people don’t send a report to the FBI when they get scammed, and others likely have no idea they’re talking with people who uses AI tools for impersonation.

Scammers will often use AI audio, video deepfakes, or fake documents created with generative AI imaging tools to convince victims they’re legitimate. Elon Musk is one of the most popular figures that crypto scammers will impersonate, as Gizmodo has reported in recent years. Scammers will often try to convince potential victims that they’re talking to the real Tesla CEO and convince people to invest in his businesses with cryptocurrencies.

Gizmodo filed a Freedom of Information Act request with FTC in 2024 that revealed some of the stories from people who were scammed by Elon Musk impersonators or people who said they were associated with the billionaire. One of the complaints was from a victim in their 50s from Michigan who said they lost $700,000.

The story is exceptional for the amount of money lost, but the techniques are common enough that they’re worth quoting at length:

In the end of June, 2023 I responded to Elon Musk’s day trading commercial on Instagram. I got a phone call from a person and started online trading with XT-BestSolutions. I’m dealing with one person [redacted] over the Viber phone services. He said he’s based in Barcelona, Spain. He guided me through the trading process daily on the XT-BestSolutions trading platform.
He also guided me through the process of transferring my money from my US Huntington bank account through Crypto wallets to XT-BestSolutions trading platform. All transaction were made through different Sources to change US dollars to cryptocurrency.
Starting on June 30, 2023 to current date, I transferred $700,000 to my XT-BestSolutions account. Through the process of online trading, XT-BestSolutions company credited me $200,000. Even though I still have more than $700,000 in my XT-BestSolutions trading platform account, I cannot withdraw any money back until I add $200,000 more to my XT-BestSolutions account to cover this additional credit, and after this (accordingly to what he saying) I will be able to withdraw all $900,000.
Its become more suspicious to me because I am not able to get information about the company, such as an address, email address or any other contact information except the phone number and one person I communicating with. [redacted]
My accountant has advised me to contact the FBI before I make anymore money transactions.

Other crypto scams include celebrities like Johnny Depp or Donald Trump, but romance scams are another popular category of investment fraud. Sometimes referred to as pig butchering, scammers will often pose as attractive people who lure unsuspecting marks with promises of love but wind up giving “investment” advice.

Victims are encouraged to contact the FBI, but the public should be aware that there are also plenty of scammers posing as FBI agents, specifically employees of the IC3.

Crypto

Solana Foundation Launches STRIDE Security Program for DeFi Protocols Following Drift Incident

Published

17 hours ago

April 6, 2026

Press Room

Solana Foundation Launches STRIDE Security Program for DeFi Protocols Following Drift Incident

Key Takeaways:

The Solana Foundation and Asymmetric Research launched STRIDE on April 6, 2026, a tiered DeFi security program covering all protocols.
Protocols exceeding $10M TVL qualify for foundation-funded 24/7 monitoring, while those above $100M TVL receive formal verification.
The new Solana Incident Response Network (SIRN) unites five founding firms, including OtterSec and Neodyme, for real-time crisis coordination.

Solana Foundation Debuts STRIDE to Protect DeFi Protocols With Tiered Security

The program, which stands for Solana Trust, Resilience and Infrastructure for DeFi Enterprises, moves away from the traditional model of one-off audits and replaces it with continuous, foundation-funded protection scaled to each protocol’s size and risk profile.

STRIDE is structured around eight security pillars covering operational security, access controls, multisig configurations, and governance vulnerabilities. Asymmetric Research conducts hands-on assessments of participating protocols and publishes findings in a public repository, giving users and investors direct visibility into each protocol’s security standing.

All Solana DeFi protocols are eligible to apply. Every participating project receives an independent evaluation and a published report regardless of size.

Image source: X on April 6, 2026.

The announcement explains that protocols that pass the STRIDE evaluation and hold more than $10 million in total value locked (TVL) qualify for foundation-funded 24/7 operational security support and real-time threat monitoring. The monitoring is calibrated to risk, meaning higher-value protocols receive more intensive coverage aimed at catching suspicious activity before it escalates.

For the largest protocols, those managing more than $100 million in TVL, the Solana Foundation funds formal verification. This method uses mathematical proofs to check every possible execution path in a smart contract, eliminating entire classes of vulnerabilities that standard audits can miss.

STRIDE version 0.1 is live now and is expected to evolve as real-world assessments provide feedback.

Alongside STRIDE, the foundation launched the Solana Incident Response Network, known as SIRN, a coalition of security firms dedicated to real-time crisis response across the ecosystem. Founding members include Asymmetric Research, OtterSec, Neodyme, Squads, and Zeroshadow. SIRN is open to all Solana protocols, with response prioritized by TVL and potential impact.

The program builds on existing no-cost tools the Solana Foundation has already deployed, including Hypernative for ecosystem-wide threat detection, Range Security for real-time risk alerting, Riverguard by Neodyme for attack simulation, Sec3 X-Ray for static analysis, and Auditware Radar for template-based issue detection.

Drift Protocol Hack 2026: What Happened, Who Lost Money, and What’s Next

A Solana-based perpetual futures exchange lost $286 million in 12 minutes on April 1, 2026, after attackers spent three weeks…

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Drift Protocol Hack 2026: What Happened, Who Lost Money, and What’s Next

A Solana-based perpetual futures exchange lost $286 million in 12 minutes on April 1, 2026, after attackers spent three weeks…

Read Now

Drift Protocol Hack 2026: What Happened, Who Lost Money, and What’s Next

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A Solana-based perpetual futures exchange lost $286 million in 12 minutes on April 1, 2026, after attackers spent three weeks…

Projects like Squads Multisig, Kamino, and Jupiter Lend have already set high internal security standards, with ten or more audits across some protocols. STRIDE is designed to extend comparable protections to teams that lack the resources to fund that level of coverage independently.

The Solana Foundation also participates in the Crypto Defenders Alliance for cross-industry fraud prevention, and STRIDE adds a Solana-specific layer on top of those broader efforts. The initiative follows the recent $286 million Drift Protocol hack, which was the largest DeFi breach so far in 2026.

Drift Protocol is the largest perpetuals exchange on Solana and it saw its TVL slide from $550 million to the current $234 million. The project’s token, DRIFT, as of 6:30 p.m. Eastern time on Monday, is down more than 37% over the last seven days. DRIFT is 98.5% below the crypto asset’s all-time high of $2.60 logged in November 2024.

Crypto

Cryptocurrency analytics company Santiment announces that Bitcoin network profitability is at its peak! Here are the details

Published

1 day ago

April 6, 2026

Press Room

Cryptocurrency analytics company Santiment announces that Bitcoin network profitability is at its peak! Here are the details

Cryptocurrency analytics company Santiment shared some noteworthy data regarding profitability on the Bitcoin network.

According to the company’s latest report, the ratio of profitable to losing Bitcoin trades rose to 2.95 to 1 last weekend.

This metric is calculated based on the difference between the price of a Bitcoin at the time of transfer and the price at which it was purchased. This ratio reveals the extent to which investors are profitable under current market conditions, while also offering important clues about market sentiment.

According to Santiment data, this ratio historically approaching the 3.0 level is generally considered a signal indicating a short-term price peak. Analysts point out that during such periods when a large portion of investors are in profit, selling pressure may increase, which could have a downward impact on the price.

Market experts emphasize that this data alone should not be seen as a definitive bearish signal, and that evaluating it in conjunction with other technical and on-chain indicators will yield healthier results. However, it is stated that the current ratio level indicates that investors should exercise caution.

While Bitcoin’s price has shown strong performance recently, investors’ tendency to take profits could be decisive in determining the market’s direction. According to experts, changes in on-chain data and transaction volume in the coming days will provide a clearer picture of price movements.

*This is not investment advice.