What most people do not understand is that the market for Russia only closed mostly in the West, while still having free access in the East where the Asian market resides. Also, sooner or later, Europe will want to have its supply of Russian oil back if their supply dwindles and no other option is out there. It's not a dead-end for Russia just yet, but I do agree that if their current situation against Ukraine goes on for long, they couldn't afford it and may have their economy crumble so hard.
As for bitcoin and crypto, the only 'decline' that I saw was within the first few hours of the invasion. Afterwards, it went normal from there. The ones who sold on a panic on February 24 were probably those who are afraid that the armed conflict will affect cryptocurrencies, but it didn't. Right now, bitcoin and crypto appears to be unbothered by what's happening in Ukraine. A few swings here and there but nothing too major, unlike on the 24th which is understandable.
I agree with your statement about Ukraine. If this conflict will continue to happen for the next few days, weeks, or even months, the worst-case scenario is that their economy will collapse. If their economy will collapse, it will have a big, negative impact on the community, most particularly on the citizens. And I really do hope it will not happen because there are too many infrastructures, livelihoods, and lives that are being damaged and taken away due to some misunderstanding and perhaps greed and misplaced grudge towards the other. Although recently, I've seen on the news that the two countries are considering peace talks. Hopefully, the genuity will reach Putin because Zelenskyy already stated what Ukrainians desire - peace.
And regarding bitcoin, I believe prior to the war between the two countries, bitcoin is already at a low position due to the market season as well as the manipulation of the whales in the market. The war did not really directly and continually affect the price of bitcoin. It did, but only on the onset of war because some people panicked and were driven by emotion that bitcoin won't be able to bounce back. However, it did. Not just as high, but it is considered now to be the usual track of bitcoin in the graphs.
Most likely, the financial system and economy of Russia will face a complete collapse, since the end of the war is not in sight, it is turning not in favor of Russia, but the bloodthirsty Putin does not abandon his intentions to seize Ukraine and pushes more and more new forces into the military meat grinder.
Ukrainian President Zelensky agreed to talks at Putin's suggestion, he said, so that no one would complain to him that he was not trying to stop the war. At the same time, he stated that peace would not be concluded by concessions to the aggressor of its territory or Ukraine's desire to join the European Union or NATO. It is the right of a free people to make a free choice. Therefore, at the talks, the condition for ending the war was Russia's proposal to remove its troops from the territory of Ukraine, including from the previously occupied Donbas and Crimea. Representatives of Russia did not agree to this and again repeated their ultimatum, which actually leads to the surrender of Ukraine as an independent state. Therefore, the negotiations have not yet led to anything.
The Ukrainians have so far skillfully and heroically defended their territory, having already destroyed more than 5,000 invaders, about 200 tanks, 816 armored vehicles, 29 aircraft and other equipment, and at the same time they have not surrendered a single large city to the enemy.
