Financial markets, including the cryptocurrency sector, were shook up on Friday after a heated Oval Office showdown between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump spiraled into chaos.

The public fallout injected fresh uncertainty into already jittery markets, with investors retreating to safe-haven assets like Treasuries and Bitcoin amid weakening economic data and looming U.S. trade policy turbulence.

The two leaders exchanged sharp words in front of global media, derailing hopes of progress on a Russia-Ukraine peace deal.

Crypto markets, hypersensitive to geopolitical shocks, saw Bitcoin surge past $92,000 as a risk-off sentiment took hold, while Ethereum climbed 3% to $3,400, buoyed by anticipation of its upcoming network upgrade.

However, altcoins like Solana and Cardano dipped 2-4%, reflecting uneven investor confidence. “Geopolitical flare-ups like this drive flight-to-safety trades, and Bitcoin’s increasingly seen as digital gold,” noted Sarah Lin, a crypto analyst at CoinMetrics.

“It’s unsettling,” said Jack McIntyre, portfolio manager at Brandywine Global. “We thought a ceasefire or peace deal was on the horizon, but this clash adds a layer of doubt. Markets—crypto included—hate uncertainty, and now we’re pricing it in.”

Zelenskiy’s U.S. visit aimed to solidify American support against Russia’s Vladimir Putin, whose invasion of Ukraine began three years ago.

Instead, the Ukrainian leader sparred with Trump and Vice President JD Vance over the war, prompting Trump to later accuse Zelenskiy of disrespecting the U.S.

Traditional markets felt the sting too. Benchmark 10-year Treasury yields slid to 4.23% from 4.27% as prices rose, while European stock futures slumped—Dax and CAC40 futures dropped 0.6%, and Eurostoxx 50 futures fell 0.6% after an earlier 1.4% plunge.

The euro weakened to a two-week low of $1.036 before stabilizing at $1.0366. Wall Street, however, clawed back in choppy trading, with the S&P 500 up 0.58%, the Dow gaining 1.4%, and Nasdaq rising 1.6%.

In crypto, decentralized finance (DeFi) tokens saw a brief sell-off before recovering, with Uniswap up 1% by day’s end.

The confrontation amplified investor unease over Trump’s looming trade policies.

On Thursday, he confirmed 25% tariffs on Mexican and Canadian goods and an additional 10% duty on Chinese imports, set to begin March 4.

Analysts warn this could stoke inflation and dampen growth, potentially boosting crypto as a hedge.

“Trump’s tariff talk is a double-edged sword for crypto,” said Rick Meckler, a partner at Cherry Lane Investments. “It fuels uncertainty, but it also drives interest in assets outside fiat systems.”

Adding to the tension, a Friday report showed U.S. consumer spending slowed last month—a key metric for the Federal Reserve—following weak consumer confidence, sluggish manufacturing, and lackluster retail and home sales.

This fueled a bond rally and kept crypto traders on edge, with some eyeing Bitcoin’s $100,000 milestone if economic signals worsen.

Yet, optimism lingered in pockets. “Theatrics aside, markets didn’t implode. Trump didn’t fully abandon talks,” said Jamie Cox, managing partner at Harris Financial Group, referencing a stalled U.S.-Ukraine rare earth minerals deal tied to Russia peace negotiations.

“If a deal gets inked, expect a rocket ride—crypto and stocks alike. Anything positive after that mess would be a relief rally.”

“The unpredictability of this administration unnerves investors,” Meckler added. “Between tariffs, diplomacy blowups, and crypto’s wild swings, it’s a lot to digest. Bitcoin’s holding strong, but smaller coins are feeling the heat.” As Saturday dawns, all eyes are on whether cooler heads—or a surprise crypto surge—will steady the ship.

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