Bitcoin drops below $35,000 after Putin authorizes Ukraine invasion

Russian President Vladimir Putin has “declared war on Ukraine”, authorizing a military operation in the country – ending weeks of diplomatic stalemate and plunging Europe and the world into a nightmare that many believe is the start of a Third World War. In a speech Thursday morning in Moscow, Putin said Russia would initiate military action in Ukraine. NBC News reported that explosions were heard in Kiev, Ukraine’s capital.

Putin authorizes invasion of Ukraine

“I made the decision for a military operation”, said the Russian president on TV just before midnight, Brasilia time. In the message, Putin called on the Ukrainian military to “lay down their arms”. Vladimir Putin has also promised retaliation to anyone who interferes in the operation against Ukraine. Ukrainian Foreign Minister Dmytro Kuleba said Putin started a war and the world must stop it.
“Putin has just launched a full-scale invasion of Ukraine. Ukraine’s peaceful cities are under attack. This is a war of aggression. Ukraine will defend and win. The world can and must stop Putin. The time to act is now.”

Bitcoin falls

Bitcoin and other cryptocurrencies, which were already trending and falling, reacted to the situation in Ukraine. Just minutes after Putin made the televised address, bitcoin, which was trading in the $38,949 range, is down nearly 8%, according to data from CoinMarketCap.

The world’s most valuable cryptocurrency has dropped below $35,000 and continues to melt as the crisis in Ukraine intensifies. Despite bitcoin’s nature of being used as a store of value, analysts say the current slump shows that cryptocurrencies are not a good choice. for investors seeking stability in times of turmoil in the market, in contrast to traditional hedges against risks such as gold.
“Bitcoin’s safe-haven narrative has almost completely collapsed as the growing possibility of military conflict and the worsening US-Russia relationship put the broader financial market into risk-averse mode.” Yuya Hasegawa, cryptocurrency market analyst at Bitbank in Japan, said in a statement. Bitcoin has gone through several downturns in its history, dropping more than 80% in a single day as a result of global events. Despite this, the digital currency has bounced back and continued to reach record highs, but this is the first time Bitcoin has been tested in a war scenario. Experts say that, as on other occasions, he will recover given his meager nature, but that may not happen anytime soon.

“Bitcoin is an unwitting participant in the volatility that is hitting all risk assets from the Russia-Ukraine tensions”analysts said. “Bitcoin roller coaster will not end anytime soon”they added.