Heightened tensions in the Middle East rattled cryptocurrency prices as Bitcoin slid to $60,000 levels on Tuesday night. The bullish cryptocurrency was last down nearly 4%, trading at $60,972.62, according to Coin Metrics. At approximately 4:45 p.m. Eastern Time, Bitcoin fell to as low as $60,175. Ether was last recorded at $2,449.83, suffering a 5% decline.
As the “all-out war” in the Middle East develops, investors lose their risk appetite in a renewed trading quarter. Historically, October and November are seen as the strongest months for Bitcoin trades in the year. In light of Iran’s aerial attack on Israel, “Uptober” takes a bleak turn toward a possible plateau. Chris Kline, chief operating officer and co-founder of Bitcoin IRA, told CNBC that “surging unrest across the Middle East has propelled oil prices upward and reinforced the dollar’s strength, casting a shadow over Bitcoin and other speculative investments.”
With September recording a “stronger-than-expected performance for Bitcoin, October looms as a potential rollercoaster, influenced by the delayed ripple effects of last spring’s halving event and the approach of a divisive American electoral contest,” Kline added. Stocks tied to digital currencies also fell during after-hours trading. Crypto exchange Coinbase noted a near 1% drop, while Bitcoin proxy MicroStrategy fell by 2%, following closing losses of 7.4% and 3.5%, respectively.
This election isn’t simply about which candidates win.
It’s about if crypto wins.
And that will be determined by the 52M American crypto owners. But who are they? Find out. ↓https://t.co/FZmsyrOS54#CryptoVotes pic.twitter.com/YigoI0P9fx
— Coinbase ️ (@coinbase) September 30, 2024
In addition to geopolitical tensions, a strike by members of the International Longshoremen’s Association on the East and Gulf Coasts is keeping investors on the edge of their seats. The result of the strike is likely to cause ripple effects in the US economy, which will impact Bitcoin’s trajectory.
Bitcoin has faced challenges in surpassing the $70,000 mark, although the $55,000 level has offered significant support for the alternate asset class. While some investors are skeptical that October will see a rebound, the majority remain hopeful that the cryptocurrency will forge new highs in the upcoming quarter.
