The volatile nature of cryptocurrencies continues with Bitcoin (BTC) recently experiencing a decline influenced by Putin’s remarks. Shortly before his statements, significant US economic data were released. The relationship between Trump and Putin remains distinct, and the latest comments from Putin might push Trump into a retaliatory stance. Fear-driven BTC might be pricing in potential geopolitical tensions.
Putin and Cryptocurrency Decline
Previously, Trump had asked India to stop purchasing oil from Russia to avoid increased tariffs, expressing gratitude when India complied. However, in a sharp contrast, Putin has now challenged this dynamic by emphasizing the robust economic relationship with India, carried out predominantly in local currencies.
Putin’s statements underline that energy cooperation with India remains unaffected by temporary political upheavals or the tragic events in Ukraine. He notes that some actors disapprove of India’s rising international market role due to its ties with Russia. Importantly, more than 90% of transactions between India and Russia occur in national currencies.
Despite a drop in trade volume over the year’s first nine months, oil and related products trade continues smoothly in India, fueled by Russian oil supplies. Putin questions why India should be denied trading opportunities granted to the US, reflecting his stance during an interview with India Today.
Putin adds that while Trump has his agenda and goals, Russia is focused on its interests, which aren’t directed against anyone but aim to protect national interests. Trump’s advisors believe that tariff policies can benefit the US economy, interpreting Trump’s actions as well-intentioned.
Speculation surrounds possible statements from Trump that might further ignite discussions affecting cryptocurrency valuations. There is potential for Trump to impose heavy taxes on India as a repercussion, adding uncertainty to the market.
In parallel, recent US factory orders data highlight a continued increase in new orders for manufactured goods for two months in a row, following a 1.3% rise in August. Shipments, which decreased for the previous two months, remained nearly unchanged this month at $0.2 billion.