Mark Mobius, a seasoned investor, discusses the reasons behind bitcoin's surge during the Ukraine crisis.

• Mark Mobius, a seasoned investor, stated that the recent surge in bitcoin's value can be linked to Russian investors purchasing the cryptocurrency.
• On Monday, Bitcoin experienced a 10% increase in value due to the imposition of sanctions on Russian institutions, including banks, following the country's invasion of Ukraine.
• Investors should diversify their portfolios and purchase gold due to geopolitical tensions affecting markets, advised Mobius.

Mark Mobius, a seasoned investor, stated that the recent surge in bitcoin's value can be linked to Russian investors purchasing the cryptocurrency.

If I were a Russian, I would be a buyer, but I wouldn't purchase anything, Mobius stated on CNBC's "Capital Connection" on Tuesday.

According to Mobius, the reason behind Bitcoin's recent strength is due to the Russians' ability to move their wealth out of the country.

On Monday, Bitcoin experienced a 10% increase in value due to the imposition of sanctions on Russian institutions, including banks, following the country's invasion of Ukraine.

The surge in transactions on centralized bitcoin exchanges in both the Russian ruble and the Ukrainian hryvnia since the invasion began has been the highest in months, according to crypto data company Kaiko.

In the early hours of Tuesday morning Eastern Time, Bitcoin's value was approximately $43,327.

Moscow's attack on Ukraine has prompted the U.S. to impose sanctions on Russian banks, its central bank, sovereign debt, Vladimir Putin, and Foreign Minister Sergey Lavrov.

The U.S., European allies, and Canada reached an agreement over the weekend to disconnect key Russian banks from the SWIFT interbank messaging system, which connects over 11,000 banks and financial institutions in more than 200 countries and territories.

The White House has established a taskforce aimed at seizing the assets of Russian billionaires, including their yachts and mansions, in addition to pursuing their personal wealth.

If not for bitcoin, the Russians would be "really in trouble with all the closures of the different avenues for them to transfer money out," according to Mobius.

On Tuesday, Ari Redbord of blockchain intelligence company TRM Labs stated on CNBC that Russia will use cryptocurrencies to avoid sanctions.

Redbord, head of legal and government affairs at the firm, stated that crypto cannot be used on a scale that would even come close to solving the sanctions problem.

"Russia is currently facing a significant challenge due to the lack of liquidity," he stated.

Redbord stated that most of the liquidity is found on large crypto exchanges with strong compliance controls to detect and report suspicious transactions.

Where to invest amid geopolitical tensions

Investors should diversify their portfolios and purchase gold due to geopolitical tensions affecting markets, advised Mobius.

"Having physical gold is crucial, as I've emphasized for a long time, and Gold is the ideal location to store it," he stated.

In February, gold, traditionally a safe haven in uncertain times, increased by more than 6%. Currently, spot gold is trading at approximately $1,908 per ounce.

Mobius advised European investors to diversify into the U.S. and some Asian markets, stating, "This is a very good lesson in diversification."

In the past month, the pan-European market lost 4.6%, while Germany's DAX index dropped 5.6%, according to FactSet data.

This report was contributed to by Abigail Ng, Tanaya Macheel, and Brian Schwartz of CNBC.