Bitcoin Plummets Below $40,000 as Tensions Between Russia, Ukraine Escalate The coin dropped over 6% early Tuesday morning.

By Emily Rella

Bitcoin plummeted early this week amid escalating tensions and word of mobilization into Ukraine by Russian troops.

The coin dropped below $40,000 in valuation over the weekend and then fell about 6.5% from early Monday morning to early Tuesday, per a report by CNN.

As of Tuesday afternoon around 3:00 pm, the coin was worth around $38,031, down about 13.72% from the week prior and nearly $30,000 less than its all-time high in November 2021.

The decision by Russia's President Vladimir Putin to begin mobilizing troops into two areas of eastern Ukraine that had been recognized as independent to help "keep the peace" has made other European countries and the U.S. decide to impose sanctions that will tighten if Russia continues to escalate military action.

"Tomorrow, the United States will impose sanctions on Russia for this clear violation of international law and Ukraine sovereignty and territorial integrity," Linda Thomas-Greenfield, U.S. Ambassador to the United Nations, said following a U.N. Security Council meeting on Monday, according to Reuters.

The impending action has taken the markets by storm, especially in the ever-volatile world of crypto.

Russia itself has also historically had a contentious relationship with crypto and its lack of proper regulation in global markets.

Last month, it was reported that the Central Bank of Russia had proposed a complete ban on crypto. Bans on crypto payments and investments on behalf of mutual funds are already in place in the country.

On February 18, the Ministry of Finance in Russia tried to pass a bill in parliament that would call for the regulation of cryptocurrency (from mining to distribution to spending) instead of a total ban, though it's important to note that the Bank of Russia is still calling for a total ban of the industry.

A separate report from last November shows that Russians conduct about $5 billion in crypto transactions each year.

Bitcoin was climbing back up around 2.82% day-over-day as of late Tuesday afternoon.

Wavy Line
Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Editor's Pick

A Leader's Most Powerful Tool Is Executive Capital. Here's What It Is — and How to Earn It.
One Man's Casual Side Hustle Became an International Phenomenon — And It's on Track to See $15 Million in Revenue This Year
3 Reasons to Keep Posting on LinkedIn, Even If Nobody Is Engaging With You
Why a Strong Chief Financial Officer Is Crucial for Your Franchise — and What to Look for When Hiring One

Related Topics


5 Questions to Ask a PR Pro Before Hiring Them

You probably haven't considered asking these questions, but they're a great way to find the right PR firm for your business.

Business News

The Virgin Islands Want to Serve Elon Musk a Subpoena, But They Can't Find Him

Government officials would like to talk to Tesla's owner as part of an investigation into the Jeffrey Epstein case.


This Location-Based Marketing Technique Is the Key to Boosting Retail Sales

Let's take an in-depth look at geofencing marketing and how it's helping retail locations drive foot traffic and boost sales.

Growing a Business

The Inevitable Challenges You'll Face as Your Business Grows — and How to Handle Them

There's going to be some discomfort as your business expands, but it doesn't have to stop you from achieving massive success.

Growing a Business

My Startup Scored a Multimillion-Dollar Contract With a Fortune 100 Client in Just 3 Years. Here's What We Learned.

There's no perfect litmus test to gauge if you're ready to go after big business or not — but if you don't take the risk, you'll never realize the reward.


How to Use Pop-Up Advertisements on Your Website Without Annoying Users

Pop-ups are potent tools for web conversions. Here's how to use them without driving your users away.