Bitcoin and other major cryptocurrencies have fallen sharply after Russia launched a full-scale invasion of Ukraine.
The bitcoin price has plunged under $35,000 per bitcoin, down almost 10% over the last 24 hours, while other top ten cryptocurrencies ethereum, BNB, solana, cardano and XRP have suffered similar falls.
Crypto’s latest price crash means an eye-watering $500 billion has now been wiped from the combined crypto market in just one week, reducing it to levels not seen since last summer.
Bitcoin’s crash in the face of mounting geopolitic tensions has degraded its reputation as “digital gold” and a safe haven for investors in times of crisis.
The bitcoin price has soared over the last two years along with global stock markets as the Federal Reserve flooded the system with cash in order to offset the economic damage wrought by the Covid-19 pandemic and subsequent lockdowns.
“I do believe the bleeding will continue, but I also think we are getting near the end. One thing I can safely say is that bitcoin is cheaper at $38,000 than it is at $69,000. It had dropped to under $34,000 a few weeks ago,” Alexandre Lores, director of blockchain market research at Quantum Eonomics, wrote in emailed comments, adding he is still “bullish on bitcoin and decentralized digital assets in the long-term.”
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“In January, I did predict certain factors would cause selling pressure,” wrote Lores, pointing to action Federal Reserve policy makers would take to combat inflation. “What I did not predict was the Russia/Ukraine tensions, which have created selling pressure across global markets, which includes crypto, as well as the S&P 500, which has fallen more than 10% from the all-time closing high it reached January 3, therefore entering correction territory.”