Bitcoin fell to a more than two-week low, plunging alongside markets as risk appetite was pulled down by growing tensions between Russia and Ukraine. On Tuesday morning in Asia, the largest cryptocurrency, Bitcoin, fell to $36,831 after Russian President Vladimir Putin announced that he will recognize two self-proclaimed separatist republics in eastern Ukraine.
Over the weekend, Bitcoin fell below $40,000 and continued to fall as the Ukraine crisis worsened, contradicting the premise that cryptocurrencies are a safe haven in times of global uncertainty.
The plight of Bitcoin’s price
This isn’t the first time Bitcoin’s price has dropped in 2022; in fact, it’s been declining for the entire year. When Bitcoin was trading at $47,000 at the start of the year, the flagship cryptocurrency was beset by controversy from all sides. Political upheaval erupted in Kazakhstan on January 2, 2022, resulting in a statewide shutdown and the shutdown of much of the Bitcoin mining business.
The United States Federal Reserve announced three days later that it may expedite the rate hike schedule, contributing to Bitcoin’s lackluster start to the new year.
By January 24, 2022, Bitcoin had dropped to $33,800, its lowest point of the year. Since then, the flagship cryptocurrency along with the rest of the industry has been catapulted into the spotlight thanks to Super Bowl 56 advertisements from FTX, Coinbase, and others. However, this hasn’t been reflected in Bitcoin’s price, which has been trending lower for the majority of the year.