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(CNN Business) --
The price of bitcoin fell below $35,000 early Thursday after Russian President Vladimir Putin announced a military operation in Ukraine's Donbas region.
Bitcoin was trading at $34,969 as of 1:22 a.m. ET, according to CoinMarketCap.
That represents a decline of more than 8% compared to a day earlier.
The world's most valuable cryptocurrency fell below $40,000 over the weekend, and has continued to fall as the Ukraine crisis intensifies.
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The currency has lost nearly half its value since its November high of $68,990 due to geopolitical tensions, the prospect of interest rate hikes by the US Federal Reserve, and restrictions by some significant economies to digital assets.
Other cryptocurrencies also fell sharply early on Thursday.
Ethereum plunged more than 12%, according to CoinMarketCap, while dogecoin fell more than 14%.
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Ethereum and dogecoin were trading at $2,349 and 10 cents, respectively.
Edward Moya, senior market analyst for the Americas at Oanda, said in a note to clients on Thursday that many investors "are hesitating to increase holdings given the tremendous uncertainty for risk assets."
Moya predicted that bitcoin will likely continue to “see decent resistance from the $40,000 level as geopolitical tensions will prevent risky assets” from rising much.
Diksha Madhok of CNN Business contributed to this report.
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