Bitcoin plummeted below $35,000 early Thursday after Russian President Vladimir Putin announced a military campaign in Ukraine’s Donbas region.

According to CoinMarketCap, Bitcoin was trading at $34,969 as of 1:22 a.m. ET. This is a drop of more than 8% from the previous day.
Over the weekend, the world’s most valuable cryptocurrency plummeted below $40,000, and it has continued to fall as the Ukraine crisis worsens.

Due to geopolitical concerns, the threat of interest rate hikes by the US Federal Reserve, and restrictions imposed by several major governments on digital assets, the currency has lost about half its value since its November peak of $68,990.
Other cryptocurrencies fell severely early Thursday as well. According to CoinMarketCap, Ethereum is down more than 12%, while Dogecoin is down more than 14%.

Ethereum and dogecoin were trading at $2,349 and 10 cents, respectively, at the time of writing.

In a letter to clients on Thursday, Edward Moya, a senior market analyst for the Americas at Oanda, stated that “many crypto investors have been humbled by the latest drop.”
“Given the great uncertainty for hazardous assets, they are reticent to increase holdings,” he added.
Moya projected that bitcoin will face “good resistance from the $40,000 mark as geopolitical concerns hinder risky assets from mustering much of a surge.”

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