BitcoinThe global cryptocurrency market cap dipped to US$1.58 trillion, with Bitcoin dropping 5.6% in less than two hours to US$34,958.

The cryptocurrency market took a dive in what was already looking like a day in the red zone after Russian President Vladimir Putin declared a special military operation for the demilitarization and deNazification of Ukraine. Cryptocurrencies traded in the red early on February 22 amid the impact of the Russia-Ukraine crisis. Russia's continued aggression towards Ukraine has prompted the United States and Europe to vow sanctions, further casting a shadow over global markets.

The global cryptocurrency market cap dipped to US$1.58 trillion, the lowest since August. The top five cryptocurrencies are all falling, with Bitcoin dropping 5.6% in less than two hours to US$34,958, while Ethereum fell by 7.7% to ​​US$2,382, according to CoinGecko.

The price of bitcoin has plunged as Russia declares war on Ukraine. The value of the cryptocurrency dropped around 7.5 percent on Thursday morning, as traditional markets were also thrown into disarray.

Bitcoin was trading at US$34,969 as of 1:22 a.m. ET, according to CoinMarketCap. That's a decline of more than 8% compared to a day earlier. The world's most valuable cryptocurrency fell below US$40,000 over the weekend and has continued to slide as the Ukraine crisis intensifies. The currency has lost almost half its value since its November high of US$68,990 due to geopolitical tensions, the prospect of interest rate hikes by the US Federal Reserve, and curbs by some major economies on digital assets. Other cryptocurrencies also dropped hard early Thursday. Ethereum tumbled more than 12%, according to CoinMarketCap, while dogecoin was down more than 14%.

As cryptocurrency markets fall, buyers are moving away from Bitcoin previously hailed as “digital gold” and seeking safer havens like the U.S. dollar and literal gold. Gold traded as high as US$1,974 on Thursday, the most since September 2020, a year characterized by the onset of the Covid-19 pandemic. 

According to researchers, the global trading volume saw a plunge by nearly 191 percent in the past 24 hours. Bitcoin, Ethereum, including all the other major altcoins are currently running in red after Russia declared war against Ukraine. On Thursday,  Putin had warned other countries to not interfere with the Russian action or else it would lead to consequences they have never seen. The announcement was made by Putin in a televised speech at the same time as the UN Security Council was urging him to give peace a chance.

Over the weekend, Bitcoin dropped below the US$40,000 level and kept weakening as the Ukraine crisis deepened.