Bitcoin Slides Below $63K, Diverging from Gold as Middle East Tensions Flare Up
Cryptocurrencies experienced a decline as tensions in the Middle East increased, causing investors to move away from risk assets. Bitcoin fell from $64,000 to $62,500 after reports of a potential Iranian missile attack on Israel, ending 2% lower at $62,700. The CoinDesk 20 Index also dropped, with ether and solana performing slightly better than average, while Polkadot, Uniswap, Polygon, and Hedera performed worse. U.S. stock indexes opened lower, with the S&P 500 and Nasdaq down 1.2% and 2%, respectively. Gold rose 1.2% to $2,690 per ounce, and WTI crude oil increased by 3% to $70 per barrel. Bitcoin's correlation with risk assets like stocks is high, with a 30-day rolling correlation of 0.62 with the S&P 500. This drop in Bitcoin mirrors past reactions to Middle East tensions.
