SINGAPORE (BLOOMBERG) - Bitcoin dropped to a more than two-week low, tumbling along with stocks as escalating tensions between Russia and Ukraine weighed on risk appetite.

The largest cryptocurrency dropped as low as US$36,831 on Tuesday morning (Feb 22) in Asia after Russian President Vladimir Putin said he is recognising two self-proclaimed separatist republics in eastern Ukraine.

Bitcoin dipped below US$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 - US/Russia/Ukraine - Bitcoin, the asset purported to be the answer to every question, has quietly weakened and is notably underperforming its archenemy, gold," said Mr John Roque of 22V Research in a note on Monday.

Mr Roque predicted Bicoin may fall below US$30,000 as traders increasingly favour gold, potentially pushing bullion to an all-time high.