There is a 1% increase in the Russia-Ukraine war leads to a 0.2% reduction in Bitcoin trading volume. The findings also indicate that the impact is more pronounced during the post-invasion period, especially after one week of the invasion. Co-movements between War attention and cryptocurrencies. War attention negatively (positively) affects all cryptocurrencies in the short term. Results consistent with cryptocurrency investors responding to War attention by seeking liquidity.
Finally, the Russia-Ukraine war predicts Bitcoin returns in both the short and long run.