Bitcoin fell sharply Tuesday, dropping more than 5% and slipping below the $63,000 mark as investors pulled back from riskier assets.
The world’s largest cryptocurrency briefly traded near $62,900 during the sell-off. Analysts tied the decline to rising geopolitical tensions and renewed uncertainty over US trade policy under President Donald Trump.
Market strategists described the move as a broad risk reset rather than a crypto-specific shock. Investors have recently rotated out of volatile assets as Washington signaled possible new tariffs and weighed military action involving Iran. The White House has continued deploying military resources to the Middle East, adding to market unease.
Bitcoin has struggled for months. After climbing above $125,000 in October, the digital asset reversed course and extended its losses into the new year. It now sits roughly 27% lower for the year and about 50% below its autumn peak.
Analysts say bitcoin remains closely tied to global liquidity conditions. When investors anticipate tighter financial conditions or heightened political risk, they often sell cryptocurrencies first.
Other markets also reflected a cautious mood. Ether, the second-largest cryptocurrency, declined more than 1%. Gold prices edged lower as well, suggesting that investors have not fully rotated into traditional safe-haven assets.
For now, traders appear focused less on crypto fundamentals and more on the broader macro picture shaping global markets.
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