Bitcoin tumbles back to the $60,000 level as tensions in the Middle East heighten
Several cryptocurrencies fell on Tuesday night. Bitcoin fell back to the $60,000 level after a rough start to what is usually one of its strongest months.
In the end, the most important cryptocurrency was down about 4%, to $60,972.62, according to Coin Metrics. At 4:45 p.m. Japanese time, bitcoin fell to as low as $60,175. The last price of ether was $2,449.83, a drop of more than 5%.
During extended trading, shares that were similar to digital currencies also fell. Crypto exchange Coinbase lost about 1% and bitcoin proxy MicroStrategy lost 2%, which is the next-biggest drop at 7.4% and 3.5%, respectively.
Drop in crypto prices to start October and the fourth quarter
Fears of new violence in the Middle East made dealers less eager to take risks as the new trading period and event began. Monday, Israel killed Hezbollah leader Hassan Nasrallah and an Iranian officer in Lebanon. In response, Iran fired ballistic missiles at Israel on Tuesday.
“Rising unrest in the Middle East has driven up oil prices and made the dollar stronger, throwing a shadow over bitcoin and other risky investments,” said Chris Kline, a well-known Bitcoin IRA co-founder and running officer.
“In sharp contrast to September’s better-than-expected performance for bitcoin, October looks like it could be a roller coaster, impacted by the delayed effects of last spring’s halving event and the impending American election,” he said. “At the same time, different central banks are lowering interest rates and increasing their money supply, creating a global monetary tug-of-war.”
Aside from that, traders are keeping an eye on an accident involving members of the World Longshoremen’s Association on the East and Gulf Coasts, which could have an effect on the U.S. economy depending on how long it lasts.
In the past, October and November have been the best months for bitcoin growth. This event has been higher in all but two of the years since 2013, with an average return of about 23%. It is now known as “Uptober” among crypto sellers in the area.
Bitcoin has not been able to break through its ceiling of $70,000, but the $55,000 level has been very supportive of the cryptocurrency. There are traders who are not sure if October will be the month when it finally happens, but most are still confident that the cryptocurrency will hit new highs in the new quarter.