Bitcoin took a hard hit on Tuesday, slipping back to the $60,000 level and giving up most of the gains it made following the recent Federal Reserve rate cut. If you’ve been following the market, you probably noticed how Bitcoin climbed to around $64,000 earlier in the day, only to tumble down as fears grew about escalating tensions in the Middle East. It all started with reports that Iran was gearing up for a missile attack on Israel, which sent investors scrambling away from ‘riskier assets‘ like Bitcoin.
During the early morning, Bitcoin reached as high as $64,000, but then things quickly turned around. As soon as news broke suggesting that Iran was preparing for an imminent missile attack, Bitcoin’s price began its descent, dropping to $62,500. The situation continued to evolve, and soon after, reports came out that the Israel Defense Forces confirmed Iran had indeed launched missiles at the country. This news triggered another sell-off, bringing Bitcoin down to $61,000.
By late afternoon, the selling pressure had pushed Bitcoin even lower, leaving the price just above the $60,000 mark. This means it has nearly erased all the gains that came after the Federal Reserve’s decision in mid-September to cut interest rates by 50 basis points—a move that initially sparked a strong rally in Bitcoin.
Right now, Bitcoin is trading at $61,450, according to CoinMarketCap data. It’s another reminder of just how sensitive Bitcoin can be to global events and how quickly market sentiment can shift.
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