Bitcoin is taking a relentless hit in the market, falling more than 5% today, Tuesday, below the psychological threshold of 63,000 dollars, amid growing concerns over escalating tariffs and geopolitical tension in the Middle East.

The world’s largest cryptocurrency briefly touched 62,964.64 dollars intraday, as investors moved away from high-risk assets in a classic “risk-off” move.

According to Christopher Hamilton of Invesco, the move reflects a broader reassessment of risk across markets. However, the crypto market in particular appears to be in a state of shock. Nevertheless, he believes this is more a case of “tactical de-risking” rather than a structural exit of investors from the digital asset market.

In any case, the outlook remains fragile. Since October of last year, when Bitcoin had surpassed 125,000 dollars, a prolonged wave of sell-offs has been underway. Since the beginning of the year, it has recorded a 27% decline, while from its October highs it has lost around 50% of its value.

Markets Fear Escalation

The deterioration in sentiment is directly linked to geopolitical developments. Last week, US President Donald Trump stated that within “the next 10 days” he would decide whether to proceed with a military strike against Iran, in the context of the dispute over its nuclear program.

Since then, Washington has strengthened its military presence in the Middle East, while markets are pricing in the possibility of further escalation. At the same time, trade tensions and the prospect of a stricter trade policy are fueling fears of tighter financial conditions.

Billy Leung of Global X points out that Bitcoin remains highly sensitive to global liquidity. “If markets assess that trade policy leads to tighter financial conditions, crypto will feel it first,” he notes.

Blow Also for Ether

Ethereum (Ether) – the second-largest cryptocurrency – has also seen its value shrink. Today it is posting a decline of more than 1%, at 1,831.52 dollars.

The sharp volatility confirms that, despite the institutional maturation of the market and the entry of major investors in recent years, crypto assets remain at the forefront of turbulence when global risk appetite contracts.

The question now is whether the decline represents a buying opportunity or a precursor to a deeper correction in an environment of heightened geopolitical uncertainty and tighter financial conditions.

SOURCE: naftemporiki.gr