The price of bitcoin dropped below $35,000 for the first time since July 2021 on Thursday as Russia began its military operation in Ukraine. Some analysts had previously warned that the sell-off could continue to worsen until tensions subside in eastern Europe. In contrast, the price of crude oil continued to shoot up, with Brent crude futures soaring more than 4.5%, crossing $100 per barrel for the first time since 2014.
Bitcoin crashes more than 7% in the last 24 hours.
After an initial Tass report on Russia’s decision, the leading cryptocurrency with market capitalization fell as much as 7.4% to $34,783. The second-largest crypto Ether also declined as much as 8.7% to $2,390.61. Other coins like XRP, Cardano, and Solana were down as well. Even before Russia’s invasion of Ukraine, bitcoin and other cryptocurrencies had started falling. Tensions between these two countries played a large part in keeping the crypto market in the red over the last few weeks. Some analysts have predicted bitcoin could fall as much as $28,000. Earlier this month, Ukraine had passed a law regulating bitcoin.
Russia warns other countries not to interfere with their matters.
According to the New York Times report, Russian President Vladimir Putin announced on national TV at around 6 a.m. local time the start of a “special military operation” in Ukraine designed to achieve the “demilitarization and denazification of Ukraine. Russian President, in the broadcast, called on Ukrainian soldiers to immediately lay down arms. Putin also threatened the supporters of Ukraine, such as the U.S. and other NATO members. He warned other countries not to interfere with their matter.
Russian crypto billionaire, the founder of Ethereum, Vitalik Buterin, expressed disappointment in Russia’s decision to abandon the possibility of a peaceful solution.