On Thursday, as Russia launched its military action in Ukraine, the price of bitcoin fell below $35,000 for the first time since January, a selloff that some analysts have warned might intensify until tensions in eastern Europe calm.
The world’s most valuable cryptocurrency has dropped more than 7% since Wednesday evening (more than 9% in the preceding 24 hours), to around $34,763 by 11.50 p.m. ET, before rebounding again above $35,000 around midnight.
The cryptocurrency has lost more than $600 billion in market value since setting a record high of more than $69,000 in November.
Ethereum, the world’s second most valuable cryptocurrency, has dropped more than 12% in the last 24 hours.
The price of oil, on the other hand, has continued to rise, with Brent crude futures jumping more than 4.5 percent and breaching $100 per barrel for the first time since 2014.
Thursday’s drop follows weeks of high volatility in the cryptocurrency’s price, which has hovered around $40,000 amid predictions of a Russian invasion of Ukraine. Russian President Vladimir Putin issued an order for a “special military operation” in Ukraine early Thursday, paving the way for a full-fledged military invasion of Russia’s eastern neighbour. Global stock indices have plummeted as a result of these developments, while commodities such as precious metals have soared.