Bitcoin prices and other cryptocurrencies tumble after Russia attacks Ukraine

Cryptocurrencies fell on Thursday after Russia launched an attack on Ukraine.

Bitcoin was down more than 4% at $35,891 around 12:45 p.m. ET on Thursday, according to Coin Metrics. Early in the day, the cryptocurrency dropped more than 8% to touch $34,702.18, marking its lowest level in a month. Ether fell more than 7% to trade around $2,436.

The drop in cryptocurrency prices comes as global equity markets tumble following Russia’s military attack on Ukraine. NBC News reported that explosions were heard in Kyiv, the Ukrainian capital.

Cryptocurrency price moves are often correlated to movements in other risk assets such as stocks.

“The prospect of geopolitical escalation has been the main driver of price moves in the broader risk asset spectrum for the past couple of weeks,” said Anto Paroian, Chief Operating Officer at digital asset investment fund ARK36. “Now that the war between Russia and Ukraine has become reality, investors are rushing to take risk off the table and stock markets globally are seeing major declines.”

The U.S. and the U.K. have slapped sanctions on Russian banks, individuals and the country’s sovereign debt. The European Union will hold an emergency meeting on Thursday and could reportedly unveil further sanctions on Russia.

Cryptocurrencies have been under pressure since bitcoin hit a record high of nearly $69,000 in early November. Since then, bitcoin has fallen nearly 50%.

Ayyar said that bitcoin could see lows at around $30,000 mark with the key level being the low of between $28,000 and $29,000 seen last July.

If bitcoin manages to hold above that, then it could move to new highs later this year, Ayyar said. But he added that if the price falls below that, then bitcoin could move to the low $20,000 mark.

Last week, the CEO of Chinese cryptocurrency exchange Huobi told CNBC that a new bitcoin bull market may not happen until late 2024.

—CNBC’s Ryan Browne contributed reporting.