Bitcoin tumbled more than 5% to fall below $63,000 on Tuesday as investors continued to grapple with escalating tariff tensions and broader geopolitical risks.
The world’s largest cryptocurrency fell as low as $62,964.64 amid investor pressure to move away from risk assets.
“The move lower in bitcoin looks less like a cryptoā€‘specific shock and more like a classic riskā€‘sentiment reset,” said Christopher Hamilton, head of client investment solutions, APAC excluding Japan at Invesco.
The plunge is likely a reflection ofĀ a “tactical deā€‘risking”Ā ratherĀ than a structural exit, Hamilton added.
Last week, U.S. President Donald Trump said he would determine “over the next probably 10 days” whether to launch a strike on Iran amid its resistance to a new nuclear agreement.
Tensions have since intensified, with Washington continuing to deploy military assets across the Middle East.
Bitcoin has seen a sharp sell-off since October last year when it crossed $125,000, with the downturn extending into the new year. The world’s largest cryptocurrency is down 27% so far this year and has lost 50% since the October high.
“The bigger point is that Bitcoin remains highly sensitive to global liquidity conditions. If markets interpret trade policy as tightening financial conditions, crypto will feel that first,” said Billy Leung, investment strategist at Global X Australia.
Spot goldĀ slid around 1% to $5,171.87 per ounce on Tuesday, while Ether, the second most popular cryptocurrency, lost over 1% to $1,831.52.
