Bitcoin falls to $62.8k as US-Iran tensions batter risk
Investing.com-- Bitcoin fell on Monday, remaining under pressure as renewed hostilities between the U.S. and Iran kept markets largely averse towards speculative, non-yielding assets like cryptocurrencies.
The world’s largest crypto fell 1.8% to $62,853.4 by 00:26 ET (04:26 GMT).
Broader crypto prices also fell on Monday, extending losses from over the weekend and remaining close to their weakest levels for the year.
Get more price insights and technical analysis on Bitcoin by subscribing to InvestingPro
Bitcoin, crypto pressured by US-Iran tensions
Bitcoin was hit by heightened risk-aversion after the U.S. and Iran traded a fresh round of attacks over the weekend, and offered conflicting signals on the state of the Strait of Hormuz.
Both sides claimed to have control of Hormuz, with the U.S. asserting that the waterway remained open, while Iran said the crossing was largely closed.
Oil prices rose sharply after the development, fueling concerns over energy-driven inflation and its effects on interest rates in the U.S. and other major economies.
This notion was a major weight on crypto prices since the onset of the U.S.-Iran war, given that higher rates tend to diminish the appeal of investing in non-yielding, speculative assets such as crypto.
Bitcoin continued to trade at levels about 50% below an October record high, as broader sentiment towards crypto remained negative. Increasing investor preference for artificial intelligence stocks also sapped appetite for crypto.
Data from SoSoValue showed Bitcoin exchange-traded funds nursing eight straight weeks of capital outflows, as institutional appetite for crypto largely waned.
Crypto price today: altcoins dither tracking Bitcoin
Broader crypto prices largely retreated on Monday amid a dearth of positive cues for the sector. U.S. regulatory developments, which had in the past been a source of strength for crypto, also remained unclear as the progress of a closely watched bill through Congress– the Clarity Act– stalled.
World no.2 crypto Ether fell 1.1% to $1,783.46, while XRP fell 1.7%.
Solana, Cardano, and BNB fell between 0.2% and 3%.
Among memecoins, Dogecoin fell 1.2%, while $TRUMP fell 2.2%.
