Bitcoin fell below $67,000 amid the risk of a protracted war with Iran
Bloomberg reports on market dynamics.
As of 5:50 a.m. New York time, Bitcoin was trading at around $66,800. The decline accelerated after the opening of European markets, where the Stoxx Europe 600 index fell more than 3% and is heading for its biggest two-day drop since April.
The crypto market as a whole showed a decline. Ether and Solana also fell in price amid an outflow of investors from risky assets. This contrasts with the previous day, when spot Bitcoin ETFs in the US recorded an inflow of $458 million.
Investors continue to move into defensive assets after the US and Israel began bombing Iran. Tehran has reportedly stepped up attacks on the US and its allies in the region and threatened to block the Strait of Hormuz, one of the world's key trade routes.
Piotr Koziakov, CEO of the Mercuryo crypto payment platform, noted that Bitcoin is once again acting as a sensitive indicator for traditional financial markets.
At the same time, Prakash Kala, head of research at Apollo Crypto, called the market movements a period of correction after the previous day's growth. According to him, since the beginning of February, Bitcoin has been trading in the $65,000–$70,000 range, so moving beyond these limits provokes profit-taking.
The MSCI Asia Pacific Index fell 2.8%, its worst two-day decline since April last year. South Korea's Kospi index lost up to 6.9%, its biggest drop since August 2024.
Oil prices are rising amid the risk of major market disruptions, which could be the largest since 2022.
Bitcoin's recent volatility amid geopolitical events is weakening the narrative of cryptocurrency as "digital gold." At the same time, gold prices rose for four days before falling slightly on Tuesday.
