Bitcoin tumbles as Putin orders military into Ukraine

[SINGAPORE] Cryptocurrencies dropped as Vladimir Putin decided to conduct military operations in eastern Ukraine, with Bitcoin slumping to a 1-month low.

The largest token fell as much as 7.4 per cent to US$34,783 after an initial Tass report on Russia's decision. Second-ranked Ether declined as much as 8.7 per cent to US$2,390.61. Other coins like XRP, Cardano and Solana were down as well.

Bitcoin's swings during the past weeks of escalating geopolitical tensions have served to undermine the argument that cryptocurrencies offer a hedge in times of trouble. The traditional safe-haven gold, meanwhile, surged to the highest level since early 2021 on Thursday (Feb 24).

"Risk assets continue to be weighed down by the Russia-Ukraine conflict and tensions. This includes Bitcoin and cryptocurrencies which are currently still very much viewed as a high-risk asset class," said Vijay Ayyar, vice-president of corporate development at Luno, a crypto platform.

The next key level to watch for Bitcoin will be US$28,000 to US$29,000, he said. If that threshold gets breached, "we could be looking at much lower levels in the low US$20,000s and below". BLOOMBERG