Europe and Asia running out of gas? Time is running out, Bitcoin unfazed

Almost 5 months after the start of the war in Ukraine, the economic consequences are being felt worldwide. The two countries are among the largest exporters of LNG (liquefied natural gas), which has a strong impact on the available supply. LNG prices in Europe have been multiplied by 5 in one year.

Inflation is on the rolls everywhere on the planet and central banks seem to be tied hand and foot. Despite this more than uncertain macroeconomic context, Bitcoin and Ethereum currently represent the hair of the beast.

Winter will be warm

The conflict adds friction in all supply chains, financial markets and in the industrial sector. The latter is very energy-intensive, especially gas. However, without energy there is no growth and a regression in an inflationary context does not bode well.

Europe is paying the price for economic sanctions against Russia, a leading energy partner. The conflict is creating enormous tensions between importing countries, which are already preparing for winter.

Japan and South Korea are among the world’s three largest LNG importers. Supply issues are therefore just as critical for their respective economies.

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Europe in the hot seat

As the Financial Times reports, the international gas market is going through turbulent times.

Gas prices in Europe and Northeast Asia. Source

Historically, the Old Continent obtained the best gas prices, compared to North-East Asia, where the 3 largest importers are located along with China. But this trend has been reversed in recent months, Europe is gradually abandoning its historical advantage.

The recently announced inflation peak has yet to be observed. For its part, the argument placing Bitcoin as an anti-inflation asset took a hit. Over the past decade, BTC has undoubtedly outperformed any other asset and therefore offered inflation protection.

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