Bitcoin drops to $60,000 as escalating Middle East tensions rattle the crypto market

Bitcoin fell to $60,000 on Tuesday evening as tensions in the Middle East worsened due to Iran’s attack on Israel. The leading cryptocurrency dropped nearly 5%, trading at $60,834.

Ether, the second-largest cryptocurrency by market capitalization, which had been outperforming Bitcoin just days prior, saw a steeper decline, plunging over 6% to hover around $2,450.

The sharp sell-off in the crypto market mirrors the negative sentiment that gripped the broader financial markets on Tuesday following Iran’s attack on Israel. The geopolitical uncertainty has rattled investors, leading to a widespread risk-off approach.

Other major cryptocurrencies also took a hit, with Solana, Cardano, and Dogecoin falling by over 8%, 7.5%, and 10%, respectively, over the past 24 hours. As a result, the global cryptocurrency market cap dropped 4.7% to $2.14 trillion, according to data from CoinMarketCap.

The market’s volatility underscores the broader impact of geopolitical events on investor confidence across asset classes, particularly within the more speculative crypto space.

Crypto ETFs have mixed results

Meanwhile, spot Bitcoin exchange-traded funds (ETFs) and spot Ether ETFs had mixed outcomes. According to ETF tracker Farside, while spot Bitcoin ETFs experienced inflows in the past week, spot Ether ETFs saw a mix of inflows and outflows.

Investors will keep an eye on the trend in the coming days following the Fed’s interest rate cut and the escalating tension in the Middle East.