The bitcoin price fell below $35,000 this afternoon after Russian President Vladimir Putin decided to launch a special military operation in Ukraine’s Donbas region.
The bitcoin price has fallen more than 8% since yesterday to $34,969.
Bitcoin fell below $40,000 last week and continues to fall as the crisis in Ukraine continues to heat up.
Due to the tense global political situation, the trend of rising interest rates by the U.S. Federal Reserve (Fed), and the introduction of measures to regulate the trade of digital assets in some major economies, Bitcoin has fallen by almost half from its peak of $68,990 in November 2021.
Meanwhile, other cryptocurrencies also crashed. The price of Ethereum fell by more than 12%, and Dogecoin dropped by more than 14%.
Edward Moya, a senior analyst at Oanda, said the slump in cryptocurrencies has dampened investor confidence in holding. This makes investors hesitant to increase their holdings due to the severe uncertainty situation that affects holding risky assets.