Bitcoin fell more than 5% to below $63,000 on Tuesday as investors continued to grapple with rising tariff tensions and broader geopolitical risks.
The world’s largest cryptocurrency fell as low as $62,964.64 amid pressure from investors to move away from risky assets.
“Bitcoin’s decline looks less like a cryptocurrency-specific shock and more like a classic risk sentiment reset,” said Christopher Hamilton, head of client investment solutions, APAC ex Japan at Invesco.
The drop is likely a reflection of “tactical risk reduction” rather than a structural exit, Hamilton added.
Last week, US President Donald Trump said he would decide “in probably the next 10 days” whether to launch an attack on Iran amid its resistance to a new nuclear deal.
Tensions have risen since then, and Washington continues to deploy military assets across the Middle East.
Bitcoin has experienced a sharp decline since last October when it crossed $125,000, and the decline has continued into the new year. The world’s largest cryptocurrency is down 27% so far this year and has lost 50% since October, SEEbiz reports.
“More importantly, Bitcoin remains highly sensitive to global liquidity conditions. If markets interpret trade policy as tightening financial conditions, cryptocurrencies will be the first to feel it,” said Billy Leung, investment strategist at Global X Australia.
Spot gold fell about 1% to $5,171.87 an ounce on Tuesday, while Ether, the second most popular cryptocurrency, lost over 1% to $1,831.52.
