Bitcoin has dropped by more than 6.5 percent as of the time of writing, trading between $35,000 and $35,150.This crash in prices is coming on the back of the early morning invasion of Russia into Ukraine.
For the past week, there has been geopolitical tension between the two neighbours who were part of the defunct USSR, which collapsed in 1990 following considerable pressure from the late President Ronald Reagan of the USA.
Both countries' geopolitical tensions started on February 20, 2014, when Russian soldiers took control of Crimea. Following that invasion, Russia annexed Crimea and other Ukrainian territory.
This move has put a big strain on their relationship and also affected the relationship between Russia and the West.
Despite the early morning decline, Bitcoin has been on a downward trajectory following the tension between both countries, which heightened early last week but worsened after this early morning invasion.
The financial markets all over the world have been badly affected by this renewed political tension.
Apart from Bitcoin, crude oil rose to its highest level in three years, rising as high as $100 within the past two days.
However, as a result of the renewed geopolitical tension, the prices of London Brent, West Texas Intermediate (WTI), and natural gas have plummeted.
Since the high of $68,990 last November, Bitcoin has lost almost half its value as a result of geopolitical tensions, the potential for interest rate hikes by the US Federal Reserve, and curbs by some major economies on digital assets.
Most traders who had placed bets that the cryptocurrency would rise in price would have lost a lot of money following this fall.