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Cryptocurrencies fall forgot on Tuesday night, with bitcoin dropping back to the $60,000 level after a shaky start to what is chiefly one of its strongest months.
The flagship crypto was last off by nearly 4% at $60,972.62, according to Coin Metrics. Around 4:45 p.m. Eastern period, bitcoin slid to as low as $60,175. Ether last traded at $2,449.83, down more than 5%.
Stocks related to virtual currencies also dumped in extended trading. Crypto exchange Coinbase dropped about 1% and bitcoin proxy MicroStrategy lost 2%, after close-knit lower by 7.4% and 3.5%, respectively.
Crypto assets fall down to start October and the fourth quarter
Rising tensions in the Middle East dampened investors’ risk appetite as the new mercantilism month and quarter began. On Tuesday, Iran launched a ballistic missile attack on Israel in retaliation for its recent destructive of Hezbollah leader Hassan Nasrallah and an Iranian commander in Lebanon.
“Surging unrest across the Middle East has moved oil prices upward and reinforced the dollar’s strength, casting a shadow over bitcoin and other speculative investments,” told Chris Kline, chief operating officer and co-founder of Bitcoin IRA.
“In stark contrast to September’s stronger-than-expected performance for bitcoin, October appears as a potential rollercoaster, influenced by the delayed ripple effects of last spring’s halving event and the approach of a divisive American electoral argument,” he added. “Meanwhile, a global monetary tug-of-war is unfolding as various central banks slash interest rates and spread out their money supplies.”
Additionally, investors are monitoring a strike by members of the International Longshoremen’s Association on the East and Gap Coasts that could affect the U.S. economy depending on how long it lasts.
October and November are historically the strongest months of the year of the year for bitcoin. It has annihilated this month higher in all but two years since 2013, averaging a return of nearly 23%. It has become known to crypto native investors as “Uptober.”
Bitcoin has contended to break its ceiling of $70,000, though the $55,000 threshold has provided strong support for the crypto asset. Some investors are unconvinced that October will be the month it finally comes back to life, but most remain optimistic that the cryptocurrency bequeath test new highs in the new quarter.