Bitcoin falls 4% as Middle East tensions rattle markets
Bitcoin dropped by over 4 percent on Sunday, falling to USD99,237 as global investors moved away from riskier assets in response to escalating tensions in the Middle East.
The cryptocurrency, still the world’s largest by market capitalization, fell 4.13 percent by 10:52 a.m. ET (14:52 GMT), according to market data.
The decline comes amid rising uncertainty following U.S. military strikes on Iranian nuclear facilities and Iran’s vow to retaliate, which have roiled global markets and prompted a shift toward traditional safe havens like the U.S. dollar and gold.
Ether, the second-largest cryptocurrency, fared even worse, tumbling 8.52 percent to USD2,199.
The losses in digital assets reflect growing investor caution, especially as the potential for further conflict threatens to destabilize global energy markets and drive inflation higher.
Cryptocurrencies, often viewed as high-risk, tend to see sharp outflows during periods of geopolitical crisis.
Sunday’s drop continues a trend that began after the first Israeli strikes on Iran on June 13, with Ether now down 13 percent since then.
Market analysts suggest that further downside pressure is possible if geopolitical instability persists or if broader financial markets enter a risk-off mode.
