Bitcoin Dips Below $35,000; Market Cap Plunges to $1.6T

The price of Bitcoin has dropped to below $35,000. This is the first time the price has dropped to such a low since July 2021. And, this rapid fall can be attributed to Russia beginning its military operations in Ukraine. The price nose-dived after President Vladimir Putin announced a “special military operation” in Ukraine. Analysts had earlier predicted this decline when tensions between the two nations were on the rise.

According to data from CoinMarketCap, the total cryptocurrency market cap has also lost roughly 5% in the last 24 hours, bringing the total market cap down to below $1.6 trillion.

Bitcoin is the world’s most valuable cryptocurrency that was at $69,044 ATH in November 2021. But this very popular coin has declined almost 50% in the last four months. Over the weekend, Bitcoin slid below $40,000. This also rebuts the popular theory that cryptocurrencies are not affected by geopolitical crises. Bloomberg had earlier reported that the price could fall below the $30,000 mark.

Ethereum (ETH) which is the second-largest cryptocurrency in terms of market capitalization also fell to $2,350.94. The coin dropped -3.8% in the last month. Other popular coins such as Dogecoin and Shiba Inu also saw a dip.

As the threat of the Russian invasion of Ukraine continues, it will drive a broad market selloff. And citing this, some analysts are saying that the crypto market’s recent weakness won’t settle until the tensions are resolved. It could even worsen amid looming inflation, predicts many analysts.