Bitcoin fell to $60,000 late Tuesday as tensions in the Middle East escalated due to Iran’s attack on Israel. The leading cryptocurrency fell almost 5%, trading at $60,834.
Ether, the second largest cryptocurrency by market capitalization, which had been outperforming Bitcoin a few days agosaw a steeper decline, plunging more than 6% to hover around $2,450.
The strong liquidation in the crypto market This reflects the negative sentiment that gripped financial markets overall on Tuesday following the Iranian attack on Israel. Geopolitical uncertainty has rattled investors, leading them to a widespread risk-averse approach.
Other major cryptocurrencies have also been affected, with Solana, Cardano and Dogecoin falling by over 8%, 7.5% and 10% respectively in the last 24 hours. As a result, the global cryptocurrency market capitalization fell 4.7% to $2.14 trillion, according to data from CoinMarketCap.
Market volatility highlights the broader impact of geopolitical events on investor confidence across all asset classes, particularly in the more speculative crypto space.
Crypto ETFs have mixed results
In the meantime, Bitcoin spot exchange traded funds (ETFs) And Ether spot ETF had mixed results. According to Farside ETF Tracker, while spotting Bitcoin ETFs experienced influxes last week, Ether spot ETF experienced a mix of entries and exits.
Investors will keep an eye on the trend in the coming days, following the Fed’s interest rate cut and escalating tensions in the Middle East.
