Bitcoin dips as Mideast tensions drive market volatility

Bitcoin fell in Asian trading on Tuesday, as cryptocurrencies were affected by broader market uncertainty ahead of Donald Trump’s deadline for Iran.

The world’s largest cryptocurrency dropped as much as 2.2%, trading around $68,800 at 1:15 p.m. in Singapore, News.Az reports, citing Bloomberg.

This decline erased gains from the previous day, when Bitcoin briefly topped $70,000 for the first time since March. Other digital assets also fell, with Ether, the second-largest token, dropping as much as 2.8%.

Escalation risks in the ongoing war with Iran have kept investors cautious, after reports that Iran rejected a ceasefire proposal. Trump stated that reopening the Strait of Hormuz would be part of any deal to end the conflict.

Since the start of the war, oil prices have surged, with Brent crude rising Tuesday and adding to roughly 50% gains since late February. Gold remained largely flat for the day and is down more than 10% since the conflict began.

Despite volatility, Bitcoin has shown relative resilience, with signs that institutional selling pressure is easing. US-listed spot Bitcoin exchange-traded funds recorded $471.3 million in net inflows on Monday, adding to $22.3 million in inflows last week.

Bitcoin has mostly traded between $65,000 and $75,000 since early March. After a sharp selloff in October, crypto trading has remained subdued, but traders are now watching for a potential end to the war and new US crypto legislation as catalysts that could push digital assets higher.

News.Az 

By Nijat Babayev