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Cryptocurrencies came under pressure on Wednesday, then Bitcoin It dropped back to $60,000 to start what is typically one of the strongest months.
The major cryptocurrency was last down more than 1% at $60,767.64, according to Coin Metrics. Earlier it briefly fell to a low of $59,983.64. ether It was last trading down 5% at $2,367.11.
Crypto exchange Coinbase Hovering below the flat line while bitcoin proxy Accurate strategy He got more than 1%.
Crypto assets stumble to start October and Q4
Rising tensions in the Middle East have dampened investors' appetite for risk as the new trading month and quarter begins. On Tuesday, Iran launched a ballistic missile attack on Israel in retaliation for the recent killing of Hezbollah leader Hassan Nasrallah and an Iranian commander in Lebanon.
“Growing unrest across the Middle East has pushed oil prices higher and strengthened the dollar, casting a pall over Bitcoin and other speculative investments,” said Chris Klein, COO and co-founder of Bitcoin IRA.
“In stark contrast to Bitcoin's stronger-than-expected performance in September, October looms as potentially volatile, weighed down by the late effects of last spring's halving event and the approach of a divisive US electoral contest,” he added. At the same time, a global monetary tug of war is unfolding as various central banks cut interest rates and expand their money supplies.
Additionally, investors are watching a strike by International Longshoremen's Association members on the East and Gulf Coasts that could impact the US economy depending on how long it lasts.
October and November are historically the strongest months of the year for Bitcoin. It has finished higher this month than in all but two years of 2013, with an average return of nearly 23%. It has become known to original cryptocurrency investors as “Uptober.”
Bitcoin struggled to break its $70,000 ceiling, although the $55,000 threshold provided strong support for the cryptocurrency asset. Some investors doubt that October will be the month when the coin finally comes back to life, but most remain optimistic that the cryptocurrency will experience new highs in the new quarter.
