Bitcoin falls below $62,000 as Iran launches missile attack on Israel

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Bitcoin fell below $62,000 on Tuesday afternoon following Iran news launch a missile attack on Israel. At the time of reporting, BTC was trading around $62,200, down 1.4% over the past 24 hours, as the conflict intensified, creating uncertainty in global markets.

Traders who had anticipated an upbeat start to ‘Uptober’ saw their hopes dashed as both crypto and stock markets tumbled at the market open.

Following Iran’s large-scale missile attack on Israel today, Bitcoin saw a strong selloff, pushing the token to just under $61,000. Although the price has since recovered to around $62,000, the ongoing conflict between Israel and Iran continues to fuel uncertainty.

Analysts warn that Bitcoin could face further downward pressure and retest the key $60,000 support level if the situation escalates.

The selloff of Bitcoin and other crypto assets was largely driven by rEPORTS of the escalation of violence in the Middle East. IRAN launch a barrage of rockets targeting major Israeli cities, including Tel Aviv, following threats of retaliation for recent Israeli attacks on Hezbollah forces. Israel Defense Forces confirmed that all Israeli civilians had been ordered into bomb shelters during the attacks.

Adding to the tension were US President Joe Biden and Vice President Kamala Harris reported to be in the White House Situation Room ordering US military forces in the Middle East to help defend Israel.

The price of Bitcoin fell rapidly as investors fled the speculative asset. At the time of writing, Bitcoin has recovered slightly, but remains down about 2% over the past 24 hours. That volatility reflects broader market uncertainty caused by the conflict, as investors seek safer assets such as gold, which rose 1.2 percent to near-record highs.

Aside from geopolitical concerns, traders took profits ahead of the upcoming FOMC. Data from CoinGlass shows significant outflows from major tokens such as Bitcoin, Ethereum and Solana, with more sellers than buyers in the market.

Over $481 million in liquidations were recordadding to the selling pressure. Ethereum saw more than $92 million in liquidations, while $113 million worth of Bitcoin positions were wiped out, marking the biggest liquidation event since early September.

Bitcoin’s recent selloff mirrors similar declines seen in April and July, when tensions in the Middle East sent crypto assets lower. With the ongoing conflict and market volatility persisting, the likelihood of Bitcoin testing lower support levels such as $60,000 remains high.

October is traditionally a strong month for Bitcoin, earning it the nickname “Uptober” for its consistent positive returns. However, given geopolitical tensions and key macroeconomic events such as the FOMC meeting, market volatility is likely to continue.

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