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Bitcoin fell by as much as 7.9% to $34,324, its lowest since
Jan. 24, and was last trading down 4.5%. Smaller coins that
typically move in tandem with bitcoin also fell, with ether
losing as much as 10.8%.
Russia launched an all-out invasion of Ukraine by land, air and
sea, the biggest attack by one state against another in Europe
since World War Two and confirmation of the worst fears of the
West.
The United States and its allies will impose "severe sanctions"
on Russia after the attacks, U.S. President Joe Biden said. EU
foreign affairs chief Josep Borrell also promised the toughest
financial sanctions the bloc had ever imposed.
Global stocks and U.S. bond yields dived, while the dollar, gold
and oil prices rocketed higher as investors scrambled for
perceived safe-haven assets. European stocks alone plunged 2.6%.
"We've seen what we'd expect so far - BTC and crypto markets
following stocks," said Jospeh Edwards, head of financial
strategy at crypto firm Solrise Group.
"All things tend to correlate in crises, and we're expecting
similar here, so worse is likely to be in store over coming
days."
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%.
(Reporting by Tom Wilson; editing by Danilo Masoni, Dhara
Ranasinghe and Barbara Lewis)
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