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Cryptocurrencies fell on Tuesday night Bitcoin After a shaky start to what is typically one of the strongest months, the price fell back to the $60,000 level.
The flagship cryptocurrency was last down nearly 4% at $60,972.62, according to Coin Metrics. Bitcoin fell to $60,175 around 4:45 p.m. ET. ether The last transaction price was US$2,449.83, down more than 5%.
Stocks related to virtual currencies also fell in intraday trading. cryptocurrency exchange Coin library Down about 1%, Bitcoin Proxy micro strategy They closed down 7.4% and 3.5% respectively, down 2%.
Cryptoassets plunge starting October and Q4
Rising tensions in the Middle East dampened investor risk appetite as a new trading month and quarter began. Iran launched a ballistic missile attack on Israel on Tuesday in retaliation for its recent killings of Hezbollah leader Hassan Nasrallah and an Iranian commander in Lebanon.
Chris Kline, chief operating officer and co-founder of Bitcoin IRA, said: “Unrest in the Middle East has driven up oil prices and strengthened the strength of the U.S. dollar, casting a shadow over Bitcoin and other speculative investments.
He added: “In stark contrast to Bitcoin’s stronger-than-expected performance in September, October’s performance looks like a potential rollercoaster, driven by the knock-on effects of a delayed halving event last spring and the approach of a divisive U.S. election. “Meanwhile, a global currency tug-of-war is unfolding as central banks slash interest rates and expand the money supply. “
Additionally, investors are watching a strike by members of the International Longshoremen Association in the East and Gulf Coast, which could impact the U.S. economy depending on how long the strike lasts.
Historically, October and November are the strongest months of the year for Bitcoin. Since 2013, the stock has closed the month higher in all but two years, with an average return of nearly 23%. It is dubbed “Uptober” by native cryptocurrency investors.
Bitcoin has struggled to breach the $70,000 ceiling, although the $55,000 threshold has provided the crypto asset with strong support. Some investors are skeptical that October will ultimately revive, but most remain optimistic that the cryptocurrency will test new highs in the new quarter.