Cryptocurrencies dropped as Vladimir Putin decided to conduct military operations in eastern Ukraine, with Bitcoin slumping to a one-month low. The largest token fell as much as 7.4% to $34,783 after an initial Tass report on Russia’s decision. Second-ranked Ether declined as much as 8.7% to $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, February 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 $28,000 to $29,000, he said. If that treshold gets breached, “we could be looking at much lower levels in the low $20,000s and below.”