Written by Brenda Nakalema

Bitcoin and Ether take the plunge in the midst of Ukraine-Russia conflict.

Bitcoin dropped to a month low following the announcement of the Russian invasion of Ukraine. Bitcoin, the world’s largest cryptocurrency, …

Bitcoin dropped to a month low following the announcement of the Russian invasion of Ukraine. Bitcoin, the world’s largest cryptocurrency, has dived 8% over the past 24 hours to $35,556, according to CoinDesk, after the Russian President Vladimir Putin launched an attack on Ukraine with Russian troops gaining entry into Ukraine amidst airstrikes on the Ukrainian capital and major cities.

Bitcoin dropped as low as $34,338, its lowest dip since late January. Ether, the second-largest cryptocurrency, also experienced a dip of 12% to $2,381.

Bitcoin and Ether remain far from their all-time highs of $68,990 and $4,865, respectively, a level they had reached in early November.

“Gold spiked to $1,950, its highest since the end of 2020. Bitcoin plunged 5% to $35,000…think we are finding out which of the two is the real heaven,” said Neil Wilson, Chief market analyst from markets.com.

A few comments made by Edward Moya, a senior market analyst at Oanda, before the Russian attack on Ukraine stated that “cryptos remain the ultimate risky asset” and that the escalation of the conflict “will keep the volatility elevated with swings to 20% in either direction.”

Bitcoin has dropped 23.3% in 2022 on the back of an expectation of higher U.S interest rates. Moya noted how Bitcoin has been “battered” on bets overtightening from the Federal Reserve “, but most of those risks are getting close to being priced in.”

The current dip in crypto has been brutal on the hearts and wallets of crypto enthusiasts, but the expectation is that an end is near, especially once the first Fed rate hike is overcome. The U.S central bank is expected to start raising rates next month.