The geopolitical tensions in Ukraine have massively affected global markets since Tuesday.
Bitcoin was down about 0.5% at $38,011.54. The cryptocurrency dipped as low as $36,370 in early morning trade which was its lowest level in more than two weeks.
Cryptocurrencies across the market also pared back steeper losses from earlier in the day. Ether lost 1.4%, while Cardano’s ada fell 4.3% and XRP slid 6.9%.
Russian President Vladimir Putin on Monday ordered troops into two breakaway regions in eastern Ukraine, moments after declaring them as independent.
“Bitcoin’s safe haven narrative has almost completely fallen apart as the rising possibility of military conflict and the worsening U.S.-Russia relationship puts the wider financial market in risk-aversion mode,” said Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange Bitbank, to CNBC.
Hasegawa said bitcoin should trade within a range of $32,000 and $43,000 this week. John Kicklighter, the chief strategist at DailyFX, said $39,500 is “first-level support heading into this week, but $32,500 looks more like the point of no return.”
The current value of bitcoin is claimed to stay for quite a while now.
Du Jun, the co-founder of crypto exchange Huobi, said, “the next bitcoin bull market is unlikely to take place until 2024 at the earliest when the next so-called “halving” event is due to take place.”
“Following this cycle, it won’t be until the end of 2024 to the beginning of 2025 that we can welcome the next bull market on bitcoin,” Du said.