Bitcoin tumbled to its lowest in a month on Thursday after Russian forces fired missiles at several cities in Ukraine and landed troops on its coast, sparking a selloff of riskier assets.

Bitcoin slumped as much as 7.9% to US$34 324, its lowest since 24 January, and was last trading down 5.3%. Smaller coins that typically move in tandem with bitcoin also fell, with ether losing as much as 10.8%.

Russia’s President Vladimir Putin authorised what he called a special military operation in the east. The US and its allies will impose “severe sanctions” on Russia after the attacks, US President Joe Biden meanwhile said.

Global stocks and US bond yields dived, while the dollar, gold and oil prices rocketed higher as investors scrambled for perceived safe-haven assets. European stocks alone plunged 3%.

While cryptocurrency proponents say bitcoin acts as a safe haven from geopolitical tensions, it often moves in tandem with other risk-on assets. Its fall on Thursday took losses since hitting a record of $69 000 in November past 50%. — Tom Wilson, (c) 2022 Reuters