War is disastrous not only for humanity but also for risk markets, as seen with the ongoing conflict between Russia and Ukraine. This war has significantly impacted risk markets and caused fluctuations in oil prices, which have negatively influenced inflation and hindered interest rate cuts. After three long years, there is renewed hope that the war may finally come to an end.
Ukraine Peace Agreement
Today brought a significant update: Ukraine has reportedly accepted a peace agreement. Former President Donald Trump announced this development on social media, suggesting that an end to the conflict is near. The cessation of the war is expected to lower oil prices, stabilize inflation, and encourage the Federal Reserve to consider more aggressive interest rate reductions. Furthermore, the reduction in geopolitical tensions will likely foster growth in risk markets.
The situation for cryptocurrencies in 2022 was notably challenging, marked by the commencement of interest rate hikes. In contrast, 2026 appears poised to begin with monetary expansion. Given that the war initiated in 2022, its potential conclusion in 2026 represents a turning point.
Trump recently shared the following message through his social media account:
“Over the past week, my team has made substantial progress in efforts to end the war between Russia and Ukraine (a war that would NEVER have started if I were President!). Last month alone, 25,000 soldiers lost their lives. The United States has crafted a 28-point peace plan, refined collaboratively by both parties, with only a few remaining points of contention.
In hopes of finalizing this Peace Plan, I have instructed my Special Envoy, Steve Witkoff, to meet with President Putin in Moscow. Simultaneously, Dan Driscoll will engage in talks with the Ukrainians. I will continue to be briefed by Vice President JD Vance, Secretary of State Marco Rubio, Secretary of War Pete Hegseth, and White House Chief of Staff Susie Wiles on all progress. I hope to meet with Presidents Zelenskyy and Putin soon, but ONLY once a final agreement to end this war is EITHER concluded or in the final stages.
Thank you for your interest in this crucial issue. Let us all hope for PEACE to be achieved as soon as POSSIBLE!”
Therefore, the upcoming talks between Putin and Trump seem likely to lead to final peace. Just as the war in 2022 caused a downturn, it is hoped that peace will now bring about an upswing.