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The price of cryptocurrencies are falling as Russia invades Ukraine, bitcoin price has plunged under $35,000 per bitcoin, down almost 10% over the last 24 hours, while other top ten cryptocurrencies ethereum, BNB, solana, cardano and XRP have suffered similar falls.

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Bitcoin’s crash in the face of mounting geopolitical tensions between Russia and Ukraine has degraded its reputation as “digital gold” and a safe haven for investors in times of crisis.

“Bitcoin is performing in lock step with other so-called ‘risk assets’ as Russia’s invasion of Ukraine sends global financial markets into a tailspin,” the trading team of the bitcoin and crypto exchange Bitfinex wrote in an emailed note. “Markets across the board are dancing to the tune of geopolitical events.”

Alongside the bitcoin and crypto price collapse, the price of oil has surged past $100 a barrel, the highest levels seen by the international benchmark Brent crude futures in more than seven years. Gold, the traditional safe haven for investors in times of high risk, has also soared higher in recent weeks.

The U.S., U.K. and some of their allies have already imposed a series of economic sanctions on Russia with more expected in response to Russian president Vladimir Putin launching a “special military operation” in the eastern Donbas region of Ukraine overnight.

The bitcoin price has soared over the last two years, climbing almost 300%, along with global stock markets as the Federal Reserve flooded the system with cash in order to offset the economic damage wrought by the Covid-19 pandemic and subsequent lockdowns.

Meanwhile, traders said bitcoin was more lucrative as an asset compared with other major cryptocurrencies, despite the drop.

“Right now, the markets have the highest demand for liquid instruments, making bitcoin slightly less of a risk than altcoins,” said Alex Kuptsikevich, a senior financial analyst at FxPro, CoinDesk reported.

“It is likely that a further deterioration in the financial situation could benefit the first cryptocurrency as a means of capital savings for investors from Ukraine, Russia, and some nearby countries,” he said

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