Bitcoin price extends fall under $40,000 as Ukraine crisis boosts gold price

Bitcoin price dropped to a more than two-week low, tumbling along with equities, even as gold price soared over Ukraine crisis.

Bitcoin price dipped below $40,000 level over the weekend and kept weakening as the Ukraine crisis deepened.  (Bloomberg)

Bitcoin price dropped to a more than two-week low, tumbling along with equities as escalating tensions between Russia and Ukraine weighed on risk appetite. The largest cryptocurrency dropped as low as $36,831 on Tuesday morning in Asia after Russian President Vladimir Putin said he's recognizing two self-proclaimed separatist republics in eastern Ukraine. 

Bitcoin price dipped below $40,000 level over the weekend and kept weakening as the Ukraine crisis deepened, undermining the argument that cryptocurrencies are a haven in times of geopolitical turmoil. At the same time, gold has reached its highest level since June.

“In the globe's latest maelstrom -- U.S./Russia/Ukraine -- Bitcoin, the asset purported to be the answer to every question, has quietly weakened and is notably underperforming its arch-enemy, gold,” said John Roque of 22V Research in a note on Monday.

Roque predicted Bitcoin may fall below $30,000 as traders increasingly favor gold, potentially pushing bullion to an all-time high.