Cryptocurrency prices plunge after Russia attacks Ukraine

Stock markets everywhere have dropped, and the situation in the crypto space is no different.

Bitcoin dumped from around $39,000 yesterday to below $34,500 in less than a day.

Other cryptocurrencies also dropped hard early Thursday. Ethereum tumbled more than 12%, according to CoinMarketCap, while dogecoin was down more than 14%.

More than $150 billion has been wiped off the entire cryptocurrency market in the last 24 hours, according to Coinmarketcap data.

Analysts said the declines show that cryptocurrencies are a poor choice for investors seeking stability in periods of market turmoil, in contrast to traditional hedges against risk like gold and U.S. Treasury securities.

“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,” Yuya Hasegawa, a crypto market analyst for Bitbank in Japan, said in a research note.